The Advantages of Different Types of Investments
- Author Andrew Marshall
- Published January 1, 2012
- Word count 602
Do you have some money to invest? If so, you may be wondering what to invest in. This article takes a look at some of the advantages of different types of investments.
Investment Trusts
An investment trust is essentially a company that invests the funds of its shareholders in the shares of other companies. An investment trust is a standalone company that individual investors can buy shares in. The trust then invests in other companies on their shareholders behalf. The main advantage is that investors are using the expertise of the fund managers. They are experienced investors and are therefore in a position to make wise choices on behalf of their shareholders. This also saves on time; you don’t need to spend time analysing the markets and choosing where to invest your money as someone else is doing that for you. Trust managers are independent advisors and are therefore acting in your interests. Investment trusts also enable those with limited funds to invest where they might not otherwise be able to. This is because their investments are pooled together with those from others.
ISA’s
An ISA is a tax efficient way of saving. Investors are able to invest up to £10,670 a year in an ISA, with no tax paid on any interest gained or on capital gains. There are two types of ISA; cash ISA’s and stocks and shares ISA’s. Investors can either have one cash ISA, one stocks and shares ISA, or one of each. The maximum that can be invested in total per year is £10,670, with a maximum of half of this being able to be invested in a cash ISA. It is possible to invest the total allowance into a stocks and shares ISA.
The obvious advantage is the tax benefits, but there are also individual benefits of each type of ISA. One of the advantages of a stocks and shares ISA is that the allowance is higher. The potential of a stocks and shares ISA is more significant than a cash ISA. Because it is invested in the stocks and shares of companies it is more likely to lead to significant returns over time, and in the majority of cases will be a better long term investment than a cash ISA. The advantage of a cash ISA is that while the potential returns may not be as high, your money is safer. If investing in an ISA you have to decide whether to go for the safe option or the one with the more potential.
Investing in Something Tangible
Investing in something tangible is another possibility. You could invest in real estate. The market is not great at the moment with some prices having fallen. This could mean an opportunity though, as you might be able to get something cheaper than it was at the height of the property market. This could make real estate a good long-term investment.
Gold is something that many have championed as a good investment recently. It can be a safe haven in an economic downturn, as it is something that is always in demand. Gold prices have risen in the last couple of years and many predict this trend will continue.
There are many other things that could be a possible good investment. Wine, for example, has become a more popular investment in recent times. Vintage wines improve and grow in value over time so is something that can be taken advantage of. Anything that is likely to grow in value over time is a good investment as is anything that will always be in demand.
Andrew Marshall ©
Visit Witan for more information about Investment Trusts. For Stocks and Shares ISA’s visit Witan Wisdom.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Zimbabwe News as a Catalyst: How Informed Journalism is Shaping a New African Reality
- Africa News and the Information Imperative: Forging an Informed Society in the Age of Misinformation
- Uganda News as a Microcosm: How Quality Journalism is Building an Informed African Society
- Kenya News: A Blueprint for an Informed Africa
- Ghana News and the Quest for an Informed Africa
- Nigeria News and the Heartbeat of an Informed Africa
- “The Art of the Slow Burn: Revisiting 1970s American Cinema.”
- Designing a Bedroom Around a Single Bed That Grows With Your Child
- The Perfect Guest Bed: Why a Three-Quarter Bed is a Host's Best-Kept Secret
- Your Bedroom, a Five-Star Retreat: How a King Bed Creates a Luxury Hotel Vibe
- How to Prepare Your Home for Summer Electrical Loads
- Understanding the Difference Between Civil and Residential Excavation
- “Riding the Ponderosa: The Enduring Legacy of Bonanza.”
- Ultimate Guide to Buying Land in Tennessee: Stories, Steps, and Regional Insights
- “Navigating Nostalgia and Novelty in The Matrix Resurrections.”
- “Sin and Celluloid: Pre-Code Hollywood and the Scandalous Films Before the Censors Arrived.”
- North by Northwest: The Movie That Made Danger Look Effortlessly Cool.
- “Beyond the Lens: How Women Directors, Producers, and Writers Are Reshaping Cinema.”
- KISS - Keep It Simple Sweetheart
- 🌿 Ginger: Nature’s Energizing Elixir for the Body and Mind.
- “Riding the Ponderosa: The Enduring Legacy of Bonanza.”
- 10 Benefits of Cycling for Kids’ Growth and Confidence
- 15 Social Media Habits That Actually Grow Your Audience
- What Great Corporate Photography Says About Your Brand
- How ASEAN Powers the World’s Supply Chain
- 🌿 Ginger: The Golden Root of Wellness and Vitality.
- “Beyond the Gavel: Cinema’s Most Compelling Courtroom Dramas.”
- Denzel Washington: Crafting a Legacy of Strength, Gravitas, and Change.
- Ginger: Nature’s Fiery Ally for Health and Vitality.
- The Data-Driven Dinner: How Hospitality Uses Analytics To Know You Better