Ms Wilson should consider exposure to an investment strategy spread across the globe, including emerging and frontier markets as well as exposure to exciting and fast-growing sectors such as robotics or cyber security. They have huge potential for growth over the coming years.
She could also diversify with infrastructure as an example of an investment that tends to generate a consistent yield and is does not always move up and down with the stock markets.
Once Ms Wilson has chosen where she wants to invest, an important decision is whether she uses active fund managers, which make investment decisions on her behalf, or “passive” funds, which track the markets.
Trackers will come at a lower cost but active fund management might be more appropriate because markets have recently reached all-time highs and it is important to be selective in what you own.
Saving can be tough, especially during university years, and I would encourage Ms Wilson to only contribute what she can afford. There are strict exit penalties on the Lisa should she wish to make withdrawals prior to the purchase of a property or before age 60. Ms Wilson should keep a separate cash deposit emergency account to cover the cost of any unforeseen expenditure.
It is never too early to develop good saving habits and I commend Ms Wilson for her ambition to invest in her future. It is important to save for the future as well as to have fun today.
Alistair Cunningham, of Wingate Financial Planning:
With a 10 to 15-year timeframe and a somewhat cautious attitude to risk Ms Wilson should really be looking to invest around 50pc of her money in the stock market.
This might sound somewhat high, but when looking to purchase a property there is the risk that being too cautious, for example investing entirely in cash, will mean there is no real growth from the investments itself. We can probably assume house prices will increase over the timeframe she is saving.
By investing monthly, Ms Wilson will see the benefits of “pound cost averaging”, this is a well-established method of protecting investors from buying investment funds at a high (or indeed low) point.
This year the Government bonus on the Lisa is added at the end of the year, but in future years Ms Wilson will see her £333.33 per month contribution increased by 25pc.
Theoretically a better return is provided by saving at the beginning of the year (as markets go up more often than they fall), but I would suggest Ms Wilson might be put off from future saving if we have a downturn this first year.