What Are the Best Investment Options Available to You in 2020?

What are the best investment options for the greatest returns? A question which is on the lips of thousands of people throughout the UK, looking for extra cash, the chance to expand their investment portfolio.

It is widely recognised that you do not need to be sitting on a vast piggy bank of money to start investing. Whether you have £100 a month to invest or £100,000, there is an investment option out there for everyone. For those who do choose to invest, they are opening themselves to great potential long-term returns from their single or multiple investments.

But what are the best investment opportunities?

Investing Tips

Before we explore what investment opportunities are available, it is important to carefully look at what the process of investing involves.

Review your needs and desires

To ensure you do not blindly invest in the wrong option which hampers your progress, it is recommended to take your time and analyse what you really want from your investments. Knowing your needs, desires and most importantly financial situation, you will be able to obtain an understanding of the risks and returns associated with investments.

Time Frames

The time frame of your investment is one of the most critical elements you need to understand. The time frame of your investment vary substantially for different goals and therefore will determine the type of investment or risks you may take. Important considerations can include:

  • How soon do I need or want to get your money back?
  • If you are looking to raise funds for something in a year or two’s time – what investment options does that leave me?
  • Longer-term goals, e.g. pensions.

What is your investment plan?

Once you have identified your goals and time frame and the risk you can cope with, you can draw up your investment plan. Through drawing up your investment plan you will be able to identify the types of investments that are best for you.

Investment Options

Potential investors in the UK are spoilt for choice with the number of investment opportunities and products that are available at varying price points. Each product or investment avenue have their own advantages, disadvantages, risks and most importantly the potential returns on offer.

Investment trusts and Investment 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 investment opportunities. As investment trusts are close-ended, they provide investors or shareholder with long-term investment plans and returns. In comparison, investment funds are open-ended and can provide investors with faster returns.

It is important to highlight that both investment trusts and funds work in line with the stock exchange, so the returns you may receive may rise or fall in line with market trends.

Stocks and Shares ISA’s

Stocks and shares investments are one of the most popular investment opportunity available in the UK. This is for a number of reasons:

Stocks and Shares ISAs are a good investment because they are extremely tax-efficient – if you keep your ISA contribution with the tax-free limit, you will not need to pay any taxes. Secondly, stocks and shares ISAs are extremely flexible and are a fantastic choice to start your investment journey.

As discussed the investment route you decide to take should rely on what you perceive is best for your needs and demands. Investing, whether this is in property, the stock markets or ISA’s provides those with the opportunities for significant financial returns. However, it is important to remember that all investments have some form of risks associated.

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