Changes in the financial markets are causing investors from all over the world to look for new investment ideas. Investment planning is taking a new direction and so should your own ideas about where to invest your lump sums. This article looks at ideas for both long-term savings and shorter investments with varying levels of risk.
Traditional bank investments
For those considering lower risk and more 'stable' investments, check out what your High Street banks have to offer.
Fixed term bonds
Fixed term bonds often allow you to invest a large sum of money and if you leave it there in the bank for an agreed term (make sure you are comfortable with the term as a lot of banks withdraw any interest paid if you take out the sum early), they usually pay you a better rate of interest than any savings account will. Typical terms are from three to ten years and usually there is a minimum of £5000 investment (as of 01.07.11). High interest savings
High interest savings accounts work on the same principle as the above, you leave it in for a
long-term and you get higher rates, but the savings account counterparts often give you a lower rate of interest if you need to withdraw, meaning that you have the freedom to control your money, but you just have to accept a little lower rate for it. This is good if you want to invest on a long-term basis, but it is less wise if you will need your money. Investment calculators online, such as lump sum investment calculators, can give you an idea about what you could gain.
Investing in new businesses
Many new businesses are seeking funding from the private investor circuits which gives you, as an investor, a great opportunity to be involved with new enterprise. Check out websites that give information on start up businesses as they often have forums where new business owners can 'pitch' for funding and then you carry on negotiations elsewhere.
Playing it clever
If you have a bit of an entrepreneurial head, why not consider making your money work harder for you. Putting money into your own ventures is risky only if you do not trust yourself to see through the deal or scheme. Try to make money out of your hobbies. If you know about cars, why not keep a look out for bargain cars that you can resell? Or if you are into crafts, why not wholesale order craft supplies and sell them on eBay or at craft groups? These ideas are investments in your ability to make money, so use them!