Even if you employ an investment advisor it makes sense to think about different types of investment, and the mix of those investments that might suit you.

The number and variety of such investments available to you is vast, including ordinary shares, gilts and other bonds, savings accounts, warrants, options, exchange traded funds (etfs), investment trusts, unit trusts, preference shares, premium bonds, currencies, property, art, wine, commodities and many more. You could of course otherwise hide it under your mattress.

Whatever your choice it may be worth bearing in mind:

  1. Investment is a balance of risk and reward. A higher return (whether measured in interest, capital gain, satisfaction, pheasants....) normally goes with a higher risk of losing your cash.

  2. There is rarely such a thing as a 'free lunch'. If an investment looks too good to be true, perhaps it is?

  3. A canny investor can make a killing, but only if he knows more about an investment than those offering it. Or is lucky!

  4. The relative benefit of an investment can be altered by any special tax treatment it may enjoy or suffer.

  5. Deciding not to invest may also involve cost, or risk, too - you'd probably have to pay for a safe deposit box.

Investing.it sets out to help you think about different types of investment that might suit you. You might then want to discuss your options with your financial adviser.



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