High Yield Investments in the UK
This article will introduce everyone to various safe, high yield investments, what they offer and how to go about them.
There are several ways for any willing person to invest his or her money, but not many will fetch them plenty of returns on their capital. And several of the high yield investments are scams that promise you everything and give you little or nothing as payback for your capital. Investors must be wary and inculcate patience before depositing money for any investment.
Low-Risk high yield Investments
The major problem with many high-yield income investments is that the risks are high. You are better served with assets that can offer you over 10% returns. You get almost guaranteed surplus yields with the slightest risks. Top-performing assets include P2P loans, alternative money vehicles, real estate, etc.
For investors who don’t mind taking high risks for potentially high profits, cryptocurrency is one of the best money moves you can make. You can start with popular cryptocurrencies like Bitcoin and Ethereum before putting money into other coins. But you must know that cryptocurrencies are quite risky for day trading or short-term high return investment due to their volatility. Plenty of money can be made in a short time, and you could also lose a lot very fast. But you may gain big profits if you are patient.
Certificates of Deposit
A certificate of deposit is a deposit account for a periodic time that fetches interest during the deposit duration. The duration could range from a quarter to half a decade. The returns on these certificates are better than a savings account because you can’t withdraw the money early without incurring a penalty. Some certificates of deposit have maturity dates at various periods, such as every year or every half-year. You get greater interest rates at each interval.
Real Estate Investment Trust
Real estate investment trusts or REITs are high-yield property investments from realtors. These institutes purchase properties and oversee these properties on investors’ behalf. Investors profit every 3 months or every year from these. It is an excellent way to invest in properties without spending active time and energy searching for, purchasing, and managing properties. The interest rate from some REITs ranges around 8%.
REITs can be bought from investment companies or on the stock market. Not all of them are listed on the market. Most REITs require a minimum capital of thousands of dollars.
Corporate bonds refer to bonds issued by large companies to raise money. But they are quite risky as they aren’t as secured as government bonds. Stick to long-term companies which minimize the risk involved. Corporate bonds can be purchased through funds dedicated for the purpose.
Growth stocks are the stocks of companies known for their accelerated growth. These companies are expected to keep the trend and keep on growing at a constant, rapid pace. These companies experience blistering growth that outpaces others. The market valuations of these companies have increased tremendously through several years, and their share prices continue to trend up. Buying these companies' stocks is a high return investment decision. These stocks are mainly purchased for their projected capital growth rather than their dividends. Investing in them is for those who don’t mind leaving their money untouched for some years. Most growth companies pivot on reinvesting and expansion rather than paying back dividends to those who put money into them.
P2P stands for Peer-to-Peer investment. It involves investing in valuable notes from borrowers who request loans from non-bank lenders, such as microlending companies. The notes fetch interest. P2P takes place over the internet through a P2P investing company. Investors can sell the issued notes, which basically represent loans, before the borrower repays the debt to exit the investment and recoup their capital if the company offers such service. P2P usually provides better interest rates than what traditional investments offer to investors. The returns are more impressive than what is obtainable from several other schemes, ranging from 5 to 14% and higher. You can try this kind of investment at Robo.cash and obtain up to 13.3% of annual returns. The investment process is fully automated, so once you set up your portfolio, you may leave the capital invested and just watch it grow.
Portfolio diversification is key to securing capital and mitigating risks. All your money shouldn’t be invested in one asset. You can use any strategy you desire to diversify your investment portfolio. Various high-income investments can be invested in for the diversification of your portfolio. Diversification applies to loan tenure too. Some investors diversify by investing in both short-term and long-term loans. Short-term loans last for six months or less. Long-term loans last for over six months to several years.
Select a solid platform for investing
So, you can look for platforms that have a license. The FCA is the only body that oversees and regulates all investment companies in the United Kingdom. Investing on any platform not authorized by the FCA is risky.
Here are some features you can look for to secure your high-yield investments in the UK:
Some platforms are fully automated, and they pick loans and the best short-term high yield investments for you automatically after verifying your preferences the first time. Subsequently, you deposit money, and the money gets allocated automatically. This saves a lot of time and prevents any unnecessary back and forth.
- Competitive interest rates
Some platforms offer better interest rates than others. Your aim is to get a high return on investment, and you have no reason to get stuck with abysmal rates. Aim for at least 10% returns on your money. Some platforms give you the option of earning up to 13% of your capital, subject to how much is invested.
- Buyback Guarantee
Go for platforms that offer you guaranteed buyback on unremitted or unpaid loans. 30-day buyback is fair and reasonable enough. Some awesome platforms will even pay you interest for both the 30-day buyback period and the regular loan term. Some platforms will tell you to wait for several months before getting your returns. Some don’t even offer any buyback.
The charges by the site of your choice should be minimal. Some platforms won’t even charge you any fee, thus ensuring maximal returns.
- Reasonable minimum deposit
You want a reasonable minimum deposit and not something so expensive that you can’t afford it conveniently. You can invest as low as £10 on some platforms.
- Ease of withdrawal
Invest in platforms that allow you to make withdrawals easily. Normally you can just request the withdrawal in your personal account and expect the money shortly after. The transfer may take from a couple of hours to 3 days. However, some platforms may charge fees for withdrawing certain sums, or set limits for minimum withdrawal. You can find out about them by searching through investor communities on social networks and messengers.
- Deposit options
A good company should allow varying deposit options for ease of access.
This writeup has covered various high-yield income investments for you to invest in. You have a plethora of options, and you shouldn't waste time on low-yield offers. P2P financing is one of the best options out of those listed. Take your time when selecting a company or platform for managing your money. Conduct additional research and vet all claims. Ensure that you fully understand the risks associated with what you are investing in.
* The information in this article is intended for educational and entertainment purposes only and cannot be considered investment advice.