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So you have extra money and are looking to invest? There are plenty of U.K. investments out there which can put your extra money to work.
Investment is a very important part of modern life. If you have money above your current financial needs, unless you intend to hide it under your mattress, you are, wittingly or unwittingly, going to take part in investment. Rather than just dropping it into savings, which is only one form of investment, it would be wise to investigate all of the options available to you. There are a vast array of financial products which can give you positive returns on your money. However, invest with careful research; making an investment mistake can be costly.
If you intend to save money over a very short term, it could be wise to choose a deposit account at a bank or building society. These accounts are very easy to clear out when you need to use your money. The capital accrued in these accounts are invested into the business world and will yield consistent, safe, steady returns. These types of accounts will not yield huge returns, however.
If you are looking down a longer window, it might be wise to choose a more sophisticated financial product. Investment Trusts are a good long term financial product. They allows you to become a shareholder in an emerging company. If you select a company which provides a service that you think will become of great value, this could help you realize great returns. Unit Trusts are a product which pools a group of investors' capital, and spreads it across a variety of investments. This reduces your risk and exposure to loss in the event that a failure in one business were to occur. Open Ended Investment Companies(OEIC) are a service where shares are created at the point of investment and canceled when they are sold back for cash.
Long term insurance products can also be a good way to invest your money. Whether you choose annuities, investment bonds, or endowment policies, these products help you turn extra capital into security down the road.
It is important that extra money but put to work in the economy. This is how new business and prosperity is created for all. Based on your needs and size of capital, take a long look at U.K. investments that can deliver long term financial security.