There are many different investment opportunities available, depending on how much money you can invest, for how long you can invest for and how much risk you are willing to take. Some investment options include;
Equities – This involves buying shares in a company. For each share you buy, you will own a small part of that company. If the company does well it is likely the share price will increase and conversely if the company performs poorly the share price is likely to decrease. By investing in equities there is a chance you will lose money but generally speaking, equities have the potential to deliver higher returns than other investments over the long-term.
Bonds – These are loans where you are the lender and the government or a company is the borrower. You receive your money back over time, with interest. Bonds are generally slightly lower in risk than equities.
Open-Ended Investment Companies (OEICs) – you invest your money into one company, and they invest on your behalf. Your money is pooled with that from other investors and then the fund manager will buy assets like equities, bonds and property on your behalf. The value of your shares in the OEIC will rise and fall depending on how these investments perform. OEICs allow you to have a more diverse portfolio than if you just bought equities or bonds on your own, this helps to reduce risk.
Offshore Investments – An offshore investment is one that holds your money outside the UK. This can be advantageous for certain investors from a tax perspective. Some Offshore Investments will be subject to a lower level of regulation that those based in the UK, so additional due diligence is always recommended.