What are the best investments in the UK 2020?

What are the best investments in the UK 2020?

best investments uk

What are the best investments in the UK 2020?

What are the best investments in the UK 2020?

In these uncertain times, should you invest? And, if so, where? Despite the shaky economic climate, many sectors continue to thrive. And don’t just take our word for it. The Financial Times agrees too.

Now’s a good time as any to get your investment head-on and start exploring options. Netflix gained 16 million new subscribers during the lockdown, which shows that the film industry is a good sector to invest in.

Here are a few ideas to motivate you and help you formulate your plan – even if you’re a total beginner.

Property Investment In The UK

Looking for UK investment ideas in the property market? It’s a popular sector and offers a range of options to the curious investor. Buying a commercial or property or home is one way to get started. But, if you’re not cash-rich, or don’t want the hassle, you could put your money into Real-Estate Investment Trusts (REITs).

What are REITs?

If you’ve been Googling ‘investment UK ideas’ look at REITs. These funds only invest in property. Your returns will, in part, depend on the performance of your investments – but this is a great entry point to cut your teeth on.

How About Buying to Sell On?

If you’ve only seen a plan and not the property, there’s a risk. Will it turn out the way the developer promised? What if the building company goes bust? But no plan for investment in the UK (or anywhere, for that matter) comes without its fair share of risks.

The plus side? You can often make a bigger profit. This means you could take home a larger slice of the proverbial pie when the deal is sealed.

Remember to Factor in Expenses

Expenses will be deducted off whatever profit you make. So factor them into your newly-prepared investment in the UK plan to ensure your maths work.

Expenses incurred when investing in UK property include:

  1. Land registration fees
  2. Estate agency fees
  3. Mortgage costs
  4. Stamp duty
  5. Survey costs
  6. Insurance set-up fees

Should I or Shouldn’t I?

How much experience do you have? What capital do you have to work with? Will you be overstretching yourself financially (and emotionally) by doing this?

If you decide to go ahead, remember there are no short term gains. There’s no Investment UK Rulebook either to help you get an easy win.

Remember to plan and budget and, wherever possible, seek professional advice before committing to an investment – not just in property, but in any other sector.

Film Investment In The UK

In 2017, the British film industry was worth an impressive £6 billion. And, despite the current pandemic, we’ve seen a surge in demand for streaming services like Netflix, Amazon Prime, and YouTube TV.

Film Investors Follow Due Diligence First

  1. Find out who else is involved and what experience they have in the industry
  2. Is the film a vanity project for an unknown director or a blockbuster helmed by a household name?
  3. Are any well-known actors attached to the project to give it greater kudos and how popular are they?
  4. Is the screenplay good or has it gone through several rewrites already?

Enterprise Investment Schemes

One route available to private investors is a film fund (also referred to as an Enterprise Investment Scheme (EIS). It lets you invest in lesser-known companies and offsets risk by allowing relief on capital gains or income tax.

This provides film investors with a greater degree of confidence, as they are protected by a safety net. But, as already highlighted, the demand for film only continues to grow. So add this sector to the Investment UK folder on your laptop.

UK Stock Market

Let’s be clear. There are no guarantees when it comes to investing in the UK stock market. You also need to know that it’s about playing the long game. Dipping in and out isn’t advisable. You need to dig your heels in and invest for at least 5 years and maybe longer.

What are Shares?

To understand shares in relation to investment UK, you need to know what they are and how they work. A share isn’t complex. It’s just a unit of value for a business. That value will rise and fall – depending on market conditions and other mitigating factors.

You buy a share in a business because you believe it’s going to do well and want to reap the rewards when you (eventually) sell your dividends.

How should I buy my shares?

Unless you’re a seasoned investor, it’s best to go through a specialist broker with knowledge of the sector you’re interested in – be that property, film, or something altogether different.

Your broker buys and sells the share for you. Their sole aim will be to get you the best price. There are three types: Advisory brokers, who leave the decision to you; Discretionary brokers, who take total control but charge higher fees; and Execution brokers, who provide no financial advice.

What shares should I invest in?

According to the Times, these are the sectors you’d be wise to take a closer look at:

  1. Investment in the UK continues to pick up pace in the online payment sector. People are spending more time at home and using their credit and debit cards, rather than paying in cash. This means the fintech and payments sector will probably grow.
  2. The restaurant sector has experienced a lull in recent months. But those savvy companies that ride the wave will reap dividends later – as they will have a greater share of the market.
  3. Online services (including streaming) should also be on your ‘Investment UK Watchlist.’ Customers with more time on their hands are looking for ways to stay occupied and to prevent the doldrums from setting in. Buying things and binge-watching box sets is on the rise.

Ready to Take the Next Step?

We hope you feel more prepared to research opportunities and have a deeper understanding of how investment in the UK works – not just in film but across other sectors.

If you have a specific interest in investing in film, talk to us. We specialise in connecting filmmakers with investors. Our experience spans over three decades and we’re partnered with some of the very best streaming services.

Why not fill out our EIS application form while you’re here or get in touch.

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