If you have earned enough and do not have a plan to get them multiplied then, this article is going to be of great help for you. Having money and simply accumulating it in a savings account is similar to owning a cow and not milk it. To be more accurate, there are a lot better options out there to utilize the money you earned and get them multiplied than simply keeping them in your savings account. What you need to do first is to find out the best and simplest way that suits you to invest your money and helps you to make more money out of them. This article specifically tells you about the top ten business ideas to make the best return on the £50,000 investment in the UK. So if you are a UK resident and are looking for any such idea, then this article is going to guide you in the right direction.
Investment or Savings?
Before starting with the top ten ideas to invest £50,000 let us first discuss what is a better option: Investment OR Savings? And why?
Living in the present time is not easy enough to carry on with a fixed amount of money in your savings. Simply depositing your money in a bank account would simply give you a sense of confidence that you have something for you in need. Think about a situation when the savings are not enough for you to make out of demand. This is the situation when your investment will boost your morale as investing your money properly will fetch you more money. Let us now discuss the best plans for a citizen of the UK to invest up to £50,000.
Top Ten Business to Take Best Return on £50,000 Investment in the UK
1. Global Shares
Let us try to understand it with the help of an example, if a company that trades publicly issues shares in dollars in the New York Stock Exchange and then it exchanges the amount on the London Stock Exchange in pounds, this is simply known as Global Shares.
Global Registered Shares or Global Shares are the trade where multiple exchanges are made with different currencies.
2. Precious Metals
If you are looking for a long-term investment then investing in precious metals like gold can be profitable. Investing in gold is a good long-term investment as it offers you a great return that too on low risks and it is a good way to diversify your investments.
3. Small-Cap Stocks
This is again a great way to invest. You can also opt for online investments while doing this. Small-Cap Stocks means investing in small companies in the UK.
The only thing you need to keep in mind while opting for this method is that you should choose the right online broker and share dealing platform.
Investing in esoteric articles can again be a great option for investment business. If you invest in esoterics, you can make an annual compound return of almost 7% assuming 3% for the inflation and cost of 1.%. So ultimately you need a total return of about 11.5% a year.
5. Property Investments
Investing in property in the UK gives you a clear opportunity of building long-term returns from reliable rental properties. There are chances of unpredictable growth based on properties’ regional destinations. Opting for this means having less risk in investments.
6. Pension Funds Investment
This is a very common investment strategy in the UK. What you need to do is simply leave your investment invested in the pension scheme and withdraw as cash in need.
Here, there are four major asset classes:
- Money Market Investments
- Bonds and Gilts
7. Government Investment in the UK
8. Investing in Bonds in the UK
Investing in bonds in the UK is a way that is shock resistant. It is a great way to invest. You can buy the various government bonds (gilts) directly from the government of Britain. Bond investment has gained a reputation for being the safest.
9. Exchange-Traded Funds
Investing in Exchange Trade Funds or ETFs allows you a platform where you can invest in a very wide range of bonds and shares in a single package. They differ from other trades as they are traded on stock markets.
10. Larger UK Shares
Unlike Small-cap stocks, here you are supposed to invest in the large companies of the United Kingdom were investing a large amount of like £50,000 comes with safety and great returns.
Following are some companies where you can invest in large shares in the UK:
- Royal Dutch Shell
- Rio Tinto
There are more large companies where you can invest an amount of £50,000 and get your best returns.
Investment Risks and Ways to Mitigate Them
No business comes with zero risks. So before you enter the investment business world make sure you get enough courage to face the risks and knowledge to mitigate them. Here are some risks with the cause you can face in the investments business if you do not handle it properly:
- Diversifying your investments means you are inviting risks on your own.
- While you are investing in bonds, there might be chances that the risk of inflation could hit the returns.
- Investment in esoterics is volatile and comes with a risk of theft.
- In shares, if the company where you made your investment fails or works poorly, your returns may get affected. So before investing in small or large companies make sure to do sufficient research.
- While investing in property do not forget that it is an illiquid investment which means that your returns may take time. So if you need your money back soon, it might not help you.
Investing the money in new business to increase the profit is not a bad thing, but you should choose your best option. You can choose your own from the above-mentioned business ideas to make the best return on the £50,000 Investment in the UK. Please leave your comment below if the blog is useful and follow up with E-Business Blog.