Investing your money wisely is a good way to make it work for you, rather than letting it sit in the bank with interest trickling in on occasion. Any type of investment you make comes with a degree of risk attached, but some prospects are more likely than others to suffer setbacks due to unforeseen circumstances. If you would rather invest in an asset that has comparatively low risk of making a loss attached, while also offering the chance of netting a healthy return, here are 5 options to consider.
Personalised Number Plates
An investment opportunity that not many might have on their radar, owning a personalised number plate can actually be an excellent idea if you are looking to net long term gains. The most expensive examples can sell for over half a million pounds, and if you are looking to invest in one it is better to choose the more unique, rare examples from sites like AbsoluteReg.co.uk rather than something which is just a generic adaptation of a standard format plate issued by the DVLA.
P2P Lending
Lending as part of a peer-to-peer network has risen in popularity in recent years amongst those seeking to reduce the risks they face. In this case, you will effectively be handing over your money as a loan to a third party, whether a business or an individual, which they will then pay back in instalments, with interest added on top.
The stability of P2P lending comes from the small chance that the person or organisation which borrows from you will be unable to repay the loan. There have been problems with this type of investment elsewhere in the world, but for UK investors offering loans domestically it should be a suitably stress-free option.
Premium Bonds
With bank interest rates often minimal or liable to fluctuate, putting your money into Government-backed Premium Bonds remains an eminently sensible option for investment. With tax-free prizes and higher chances of winning larger amounts when you invest more, Premium Bonds have a lot to offer, with a £50,000 maximum set for an individual investor. And with the opportunity to win up to £1 million as part of a monthly draw, the returns can be significant. There are other types of bonds to consider as well, although these may be subject to tax, which is worth bearing in mind.
Classic Cars
Investing in something tangible can have a lot of risks to take onboard, as the more volatile markets might mean that your initial investment diminishes over time and you need to have nerves of steel to wait for the value to bounce back in your favour. Classic cars are a little different in that values can be relatively stable and risks are lower than with other assets. You can even spend as little as £5,000 to get a vehicle which should appreciate in value over time; just be aware that costs like storage and maintenance need to be taken into account.
Property
When it comes to long term security, investing in property can be less risky than the alternatives, as well as offering the opportunity for very high returns, so long as you choose to buy in the right place at the right time. The property market is susceptible to the ebb and flow of the wider economy, although house prices in good areas can enjoy a steady uptick in value over time on a reliable basis. As with any of the investments suggested above, there is no guarantee that property investments will pay out more than you put in, but by accepting a little risk you can reap greater rewards.