I've got some very small savings lying around generating 6.51% interest in a Ubank account. I've been interested in investing in securities hoping to get a better return over a short-medium-term time scale, say 3 years. Because the sums involved are so small (10k-20k) seeking active management doesn't make a lot of sense as I understand I'll get gouged by high costs. I'm therefore quite tempted to simply capture general market-beta by investing in index funds.
So let's say I wanted to put 10000 AUD and invest them in a cheap index (the larger the better: ideally World, else just US etc..) fund, how would you recommend I proceed and what type of fees would I be looking at?
From reading these forums it seems I'd need to set up an account with Comsec for a one-off or yearly fee. I'd also incur the fund's management costs themselves. What other fees would I be looking at? Entry / exit fees? I'm very new to this, so sorry if these questions are obvious but looking at different product files it's not always easy to se the bigger picture regarding costs.
Finally: is it even possible to invest such as snall amount in index funds, and if so: do you think it makes any sense compared to just parking it in in Ubank ?
Thanks for all input even comments telling me I'm a newb and that this doesn't make any sense at all (provided you tell me why)