What is the best investment option for me? Where can I see the most significant returns on investment? Am I ready to leap investing? These are just some of the questions on the lips of thousands of people UK looking to expand their investment portfolio.
Trying to decide what the best investment option is for you is one of the most complicated decisions you can make. As the number of investment options continue to grow, a growing number of individuals and businesses will questioning where is the best place to place their finance to support their annual salary or on-going profits. Well this article looks to explore one of the most debated areas of conversation, what is best area to invest, property or investment markets?
What is your investment plan?
Before we explore the benefits both property and investing provide, it is essential to understand some of the core features of investing.
Your needs and desires
To ensure you do not blindly invest in the wrong option, you must have a clear understanding of what you want from your investments. Knowing your neds, desires and most important your financial backing will help you understand the risks associated with each form of investment, as well as an idea of what will get you the closest to your end goal.
Your Investment Plan
Once you have an idea of what your needs are and your financial backing, it is time to draw up some form of investment plan is. Drawing up some form of plan, whether your are investing in financial markets or property will allow you to clearly identify what investment option is best for you.
The world of Investing
When we talk about investing, this encompasses a diverse range of areas and options available to investors. Potential investors today are spoilt for choice for where and what they place their money into.
Equities and shares
Arguably the classic and most sort after investment option, equities and shares provide investors with the opportunity to achieve significant gains with minimal effort. Allowing investors to take advantage of two forms of returns, capital gains (sale) and dividends (interest payments), depending on the terms and conditions of the investment. Investing in stocks and shares will continue to be one of the most popular investment options available to the general public and businesses. It is important to say, while it is possible to achieve fantastic profits from minimum effort, investing in stocks and shares is one of the more risker investment options.
As investing in stocks are shares is based on the performance of the stock market, investors should expect to see considerable shifts in the valuate of their investment as external and internal factors determine path of the market. For investors who has the ability to stomach significant shifts in valuation, investing this area is an achievable and most importantly manageable goal.
Investment Trusts and Funds
Investment trusts and funds are at the cornerstone of investments for a range of investors in the UK financial sector. Both work on collectively ‘pooling’ capital provided by investors in the pursuit of a diverse range of returns by providing their investors with exposure to a series of wide-reaching assets.
Although there are similarities between the two, investment trusts and investment funds, provide different or unique opportunities. As investment trusts are close-ended, they provide investors or shareholders with long-term investment plans and returns. In comparison, investment funds are open-ended and can give investors faster returns..
For those who look to stay away from the financial markets, a clever and relatively reliable way to diversify your investment portfolio through physical investments such as property.
As we know 2020 will hit the headlines for a number of reasons. But one of the most prominent headlines from this year will be the temporary closure and reopening of the market has provided investors with the chance to increase and diversify their portfolio in a cost-effective manner. In order to kick start the economy back into action, the Chancellor Rishi Sunak, announced a temporary halting to stamp duty on properties under £500,000, combined with the natural fall in property prices, has opened the door to investors looking to expand their investment opportunities.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.