An investment is when you place money into or buy something with the aim of getting a financial return.
Types of investments:
There is a huge range of places to invest your capital, whether it be in shares of a company you believe in investing it back into your house (mortgage repayments).
There are four main types of investment, known as ‘asset classes’ that the majority of people tend to invest in (sourced from Money Advice Service):
- Shares – you buy a stake in a company
- Cash – the savings you put in a bank or building society account
- Property – you invest in a physical building, whether commercial or residential
- Fixed interest securities (also called bonds) – you loan your money to a company or government
There are other types of investments available too, including:
- Foreign currency
- Collectibles, such as art and antiques
- Commodities like oil, coffee, corn, rubber or gold
- Contracts for difference, where you bet on shares gaining or losing value
If you are unsure of where is best to invest your money, you may like to speak to an independent financial adviser (IFA), they will be able to assess the best financial investment opportunities for you dependant on what your financial goals are and your current circumstances.
For a comprehensive guide on how and where to invest your money head to the Money Advice Service website.