Today, people who are planning to start investing their money can choose between many different paths. However, before starting to invest your savings, you should always keep in mind that all investments can put your money at constant risk; although they can generate financial growth, they are also subject to market volatility. For this reason, when approaching this world, you should always be aware that the outcome of every investment. It is always unpredictable and you may end up with less than expected.
But what are the most popular types of investments in the UK? One of the most common kinds of investments among British citizens is stocks and shares, by purchasing a stock you’ll be basically acquiring a small piece of a company with the aim of seeing growing its value. Equities are really popular as well, for they give you the chance to purchase a great variety of assets with the goal to get a financial return.
Bonds are another type of investment that lets investors lend money to companies to earn interest. On the other hand, a retirement plan is another type of investment that is growing in popularity among those who want to put money aside for their future once they stop working. ETF (exchange-traded funds) gives the holder the chance to invest in a wide diversity of securities all at once while also guaranteeing lower fees. Lastly, there are cryptocurrencies, a relatively new market that doesn’t have precise regulations yet.
Moreover, since cryptocurrencies are subject to the market’s swings, the outcome is once again unpredictable. Anyway, if you are considering to start investing in this field, you should gather information about crypto tax in the UK.
General Investment Account: what it is and how it works
If you’re planning to embark on a new investment journey and you’re struggling to figure out which investment is the most suited for you, you can consider a GIA. It is indeed a General Investment Account which has been designed to help the holder invest in a great variety of fields outside of tax wrappers.
You can invest in shares, bonds, commodities, equities and so much more according to your profile. In the UK, everyone over the age of 18 can open a GIA. This type of investment account gives the holder the freedom to withdraw money at any time with no restriction. You can also transfer your capital from another existing account into your new GIA. And you won’t have any type of restriction on the amount of money that can be deposite in a year.
Things to know when opening a GIA
In the UK, General Investment Accounts come with many benefits. In addition to letting you invest in a great diversity of financial areas, you will also be able to access your money at any time. This is not a feature to be taken for granted as many other investment accounts. A restriction on the amount of money you can withdraw or deposit in a year.
However, by opening this kind of account you will have to pay contributions depending on your tax situation. If you’re opening a GIA to start your new investment journey and to give your money the chance to grow. You should always keep in mind that, just like it happens with any other kind of investment. The risk of ending up with less than expected is always around the corner.