The word investment has a number of meanings, depending on the context within which it is used. In general, investments are referred to alongside banking and savings, as a way of taking your capital, and investing it in the hope that over time, it will grow in value. Looking at investment, it is possible to define a difference between economic and the financial types of investments. If we are to take first economic investment, it is regarded as an investment in an object such as a property, whereas, financial investments can be seen as money being put directly into a bank, or invested in business stocks and shares.
In the UK, both economic investment and financial investment can be combined within an ISA, or Individual Savings Account. ISA's come in two types: the mini cash ISA and the maxi cash ISA. With both these types of investments, cash up to £3000 is put into an account and accrues interest over however long it spends in the ISA. Maxi Cash ISA's allow for an investment of up to £7000 in stocks and shares, with a £3000 limit on the total cash investment allowed.
Investments in ISA's varies greatly between organisations, and there are many different types of ISA. These include Property ISA's, Cashback ISA's Investment fund ISA's, Index Tracker ISA's. Although an ISA is the most well known form of investment in the UK, and the most common, there are a great deal of other types of investments available should you require a different type of investment scheme. Other common types of investments include Unit Trusts and PEP's (Personal Equity Plans).
Alongside investments in ISA's and other banking initiatives, and share options, probably the most common form of investment in the UK is property investment. The value of property has continually risen for many years now, and many see this as an ideal area to invest money with little risk. Investments in property can take many forms. Most common include buy to rent investments. Here a property is bought with the sole intention of renting it out in order that the investment pays for itself, and gains value in the long term. Also common is a property investment that is bought that requires work or renovation, and then sold at a far greater price.
The world of investments is extremely complicated. The opportunity to make good on your investment is there however, and if you are looking into investing your money, in any type of financial scheme or project, it is worth speaking to an expert. For detailed information and advice on different investment opportunities, email us.