In this volatile market, we are always looking for ways to invest our money for the best return. When it comes to investing £10m we have to consider our options very carefully. When you’re investing from abroad into the UK, one needs to be even more astute.
Before we take a look at the 10 ways to invest £10m in the UK from abroad, it would be wise to make sure that you diversify your portfolio, spreading your money across a few platforms is the safest path to take.
1. STOCK MARKETS
A risky bet, but If you can get it right and find the right stock broker in the UK, you can safely invest your money into the UK Stock Market, a good stock broker will understand your attitude to risk and invest accordingly. With this sum of money, you will need to ensure they are watching and trading your money 24/7.
In addition, you can buy shares or stocks online straight into the UK Markets such as FTSE AIM 100, FSTE100 and FTSE250. But exercise caution when it comes to online investing, as this can be a very risky form of investment.
2. CORPORATE BONDS
By investing in a bond or gilt, you are essentially lending money to the issuer for a fixed period of time and receiving in return a fixed interest rate. Gilts are considered the safest out of all types of bonds, as the UK Government issues them. A word of caution when investing in bonds in general - know the underlying company or government issuing the bond. Know their history and get an idea of how their bonds have fared over the years.
3. COMMERCIAL PROPERTY
Investing in commercial property in the UK couldn’t be better at this moment in time. As opposed to residential property, investing in commercial can be a simpler and much lower cost option. By investing in commercial property in the UK, you will reap the benefits of longer lease periods, in comparison to the US and European market. The income generated from leasing is also higher but it is worth noting that during any void periods in which there are no tenants, business rates will still be payable by the owner, based on the properties rateable value.
4. ABSOLUTE RETURN FUNDS
By investing in an absolute return fund in the UK, you are in fact investing in a range of other investment types, such as options, futures, arbitrage and derivatives, to mention a few. Today, the absolute return funds or hedge funds, as they are commonly known, are one of the fastest growing investment products.
5. VENTURE CAPITAL INVESTMENTS
Think of UK TV programmes The Dragon’s Den and now the new Sharktank show. Both are about venture capitalists taking a chance on some UK up and hopefully coming new entrepreneur, with hopefully a great idea.
Taking your chances in the UK venture capital market has its risks, but may be a good call for a portion of your money. Just be very aware of what you are buying into. Do major research first.
6. RESIDENTIAL PROPERTY
Residential property in the UK is still a good investment, but you need to know your areas and key catchment areas. If you are to rent out and derive a real benefit from the rental income, you want to stake your bets in firms who understand the local area and market conditions.
7. GLOBAL EQUITIES
Global Equities, which are often used in structured products, have their own set of risks, as do all investments avenues. They can be high risk as they run closely with fluctuating currencies. Note that while you are investing into a global equities fund in the UK, it may very well be linked to the US market.
8. EXCHANGE TRADED FUNDS
ETF’s are the next best thing following investing directly into a share. And that is the point of investing in a UK ETF. The cost of tracking an index direct can be costly. An ETF does this for you in a manner of speaking. You essentially buy unit or shares in the Exchange Traded Fund and reap the benefits of having access to a market in a single share holding.
9. INVESTMENT TRUSTS
By investing in the shares of other companies, property, fixed income securities and numerous other assets, an investment trust can give you diversity and flexibility.
Very much like a unit trust set up, your money is pooled with other investors so that they invest high and reduce costs overall. An investment trust has listed UK companies within it so they are governed and monitored by the trustees. They have a vested interest in how the trust performs so it is a pretty safe investment option.
10. ETHICAL INVESTMENTS FUNDS
Ethical Investment funds are increasing in prominence at the moment. These funds do not invest in stocks that have a negative impact on the environment or the people, for example alcohol, tobacco, oil and other antagonistic avenues. On the flipside, an ethical fund manager will focus on companies that have a positive effect on the world and its natives. In the UK, there are many a company that are doing their part for the environment.
So, as you can see, there are many options to investing your £10m in the UK from abroad. Spreading your risk is always a first port of call, so take your time and research properly. The UK market is and always has been a positive force in the world of investment. Just know what you are getting into and make your choices wisely, £10m is a significant investment, but with sufficient research and carefully selected investments, you can make it work best for you.
Take our options to heart and go with your gut after researching properly. There is money to be made out there. You just need to know the right time and place.