The coronavirus pandemic has had an incredibly adverse impact on the world’s economy, but there are some small positives beginning to emerge on these shores.
For example, the Millennials and Gen Z demographics have shown an increased interest in investment since the end of 2019 (32%), with down to several factors from improved accessibility to a greater awareness of fiscal security and its importance.
But what are the best ways to invest? Here are some ideas to suit variable budgets and outlooks.
1. For the Short Term, Risk Hungry Trader – Forex
We’ll start with forex trading, which allows international currencies to be bought and sold in pairs as derivative assets. This means that you can speculate on and profit from price movements without owning the underlying instrument, creating the potential for sizable and short-term profits.
This market is also incredibly volatile and highly leveraged, so it’s possible to open and control positions that are considerably larger than your initial deposit (which can be as little as £100).
This can translate into optimal gains, although there’s also the potential to lose considerably more than your deposit value if the trade turns against you. So, forex trading is an ideal option for risk-hungry investors who are focused primarily on profitability. Or you can also purchase some cryptocurrency. You can buy BNB, Bitcoin, Litecoin etc. and make some short-term profit out of it.
2. For the Long-term, Average Investor – Stocks and Long-term ISAs
If you’re a little more risk-averse and want to invest in assets that can provide a secure store of wealth, you may also want to consider stocks.
After all, traditional stocks afford you ownership of a fixed share in a corporation, providing tangible ownership of an asset that can fluctuate in value over time. With dividend stocks, you can also secure incrementally higher returns on a regular basis, creating a supplementary income stream that accumulates over time.
You can even trade a broader range of stocks through indices, which immediately minimises your exposure to a single equity and diversifies your portfolio.
If you like the idea of long-term yields but don’t want to enter the stock market, you could also consider long-term ISAs. This allows you to contribute up to £4,000 per annum until you’re 50, while the government will add a 25% bonus to your haul (up to a maximum of £1,000 each year).
3. For Wealthy Investors – Real Estate
If you’ve already accumulated a lump sum of cash with which to invest or want to expand on your trading portfolio, a particularly appealing option may well lie with real estate.
There are also many different ways through which you can invest in real estate, whether you buy a discounted property that needs work before reselling this for a profit or secure a buy-to-let mortgage and use housing to secure a monthly yield.
Much will depend on your existing wealth and disposable income levels, of course, but this can be a highly generative asset class over an extended period of time.
Article Submitted By Community Writer
