Types of investments: 7 most profitable options in the UK (2024)

There are many types of investments and, although you have to stick to your profile before applying any amount and in any of them, it is important to understand which alternatives stand out as the best investments in the UK. Below, the main ones are:

  1. Private pension;
  2. Direct Treasure;
  3. CDB;
  4. LCI and LCA;
  5. Multimarket Funds;
  6. Debentures;
  7. Exchange Bills.

Regardless of your investor profile, it is undeniable that you are looking for the safest and most profitable modality for your assets, right?

Then You're in the right place! In the topics below, we've gathered some of the main types of investments most profitable in the country!

Do you want to know where to deposit and make more profitable investments that can help you to continuously value your resources? Just follow along with this reading to identify the best types of investments For you!

Your investor profile

Types of investments: 7 most profitable options in the UK (1)

you can have a investor profile more aggressive or conservative. However, before defining it and embarking on different types of financial investments, how about understanding what will guide your decision?

For this, keep in mind, first:

  • your tolerance for risk with investments;
  • the goals you have when investing (it's something in the short, medium or long term like a retirement, for example);
  • the initial amount available for the first contribution.

Knowing your answers to the above questions allows you to identify the best alternative among the different types of financial investments in the country.

Best types of financial investments

To start investing without adding too many risks to your decision, we recommend that you look for the fixed income investments.

And, below, we will highlight some of the main options in this type of investment!

1. Private pension

Perhaps, you have already heard of the common doubt for those who started investing and are among the private pension or treasury direct. But don't worry: let's talk about both.

starting with private pension, which proved to be a profitable option for those who wanted get out of the low profitability of savings. Even more so with the most recent discussions about the labor reforms and pension reform.

After all, the prospects for the future are pointing to the need to save continuously from an early age your income to obtain a quieter retirement.

But it's worth starting by saying that private pension not among the best investments in the UKmthem is on our list, simply because it is one of the most affordable alternatives.

In other words: you make the initial contribution based on what you have in mind, scheduling monthly investments in a fixed manner. So if you can only save $20 a month, start with that. The important thing is to get started.

But private pension, on the other hand, has two options: PGBL or VGBL. Each is taxed by Income tax in a different way, which must be observed so that you choose the modality more in accordance with your goals and needs.

2. Direct Treasure

Here, the idea is simple: your investment acts as a loan to the federal government. Consequently, the return to you is greater—a more advantageous return, therefore.

That's why more people are considering this among the different types of fixed income investments these days. It is worth noting, however, that the Direct Treasure has three options:

  • investments linked to inflation — which is the IPCA+ Treasury;
  • fixed rate investments;
  • investments indexed to the Selic rate (Selic Treasury).

It's not like you're going to be able to see it again.People looking for high liquidity tend to resort to the last option of the investment types: the Treasury Selic. That's because your income is very close to that of the Selic rate and its liquidity is extremely high (you can receive your withdrawal in one business day, for example).

So, for those who need quick money, in the face of any unforeseen events (such as a probable situation of stress financial), can count on the Treasury Direct.

And that, by the way, has a low minimum contribution: R$30. This makes the Tesouro Direto one of the most practical and profitable types of investments in the country.

3. CBD

O ÇBank Deposit Certificate it is a way to “lend” money to financial institutions that have had more withdrawals than deposits in one day. In response to the Central Bank's requirement, these transactions take place between financial institutions.

And then the investor is the one who gains as a result, injecting their investment in this modality of fixed income securities whose profitability is linked to the CDI rate.

It is worth noting, however, the specifics of each bank. CDB bonds from large banks, for example, usually generate less attractive profitability.

4. LCI and LCA

These types of investments are the acronyms for Real Estate Credit Bill is for Agribusiness Letter of Credit.

Both are applications of fixed income which have a lot to do with the CDB, but whose funds are directed to the real estate and agricultural sectors, respectively.

But the great attraction of these two types of financial investments is the following: they are tax free. All of your profitability will therefore come straight into your pocket, and will not be fragmented for paying taxes.

5. Multimarket Funds

Here, you can consider this over other types of investments if you have the moderate profile. After all, the risks are still low, although you can apply your income to stocks and commodities between others.

But it's important to have a good stockbroker to ensure you identify the best fund for your needs and goals. All because this idea consists of apply your investment in a varied portfolio.

6. Debentures

They are bonds issued by private companies. In general, they are used to pay off some type of debt or even financing, returning to the investor with a more advantageous profitability.

But the biggest point of concern, in these types of investments, is the absence of a guarantee offered by the FGC — Credit Guarantee Fund. It is, for example, that offers a return on your investments if a financial institution enters into bankruptcy.

So pay attention to your investor profile. If you don't want any kind of risk lurking in your investments, avoid the debentures — even if the profitability is more attractive than the other types of investments mentioned above.

7. Bills of Exchange

LCs work in a similar way to CDB and LCI and LCA: they are investor loan instruments for different economic sectors. Here, however, the destination of your income can be diversified so that financial institutions can use it as they see fit.

This allows for high profitability, and you can count on FGC coverage for amounts that do not exceed R$250 thousand. It can be an interesting request to identify the best option among all types of investments on this list.

And that can leave one last question in your head, isn't it? After all, which type of investments to choose?

Our tip is that you set up a conversation with a stockbroker. This type of company can accurately assess your investor profile, as well as guide you to the best alternatives according to this alignment conversation.

To learn about other fundamental questions about the types of investments and subjects related to the theme, be sure to like our page on Facebook and to follow us on Instagram, Twitter and LinkedIn. There, you will know first hand all our news on these subjects!

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I'm a seasoned financial expert with extensive knowledge of various investment instruments and strategies. Over the years, I've gained hands-on experience navigating the complexities of financial markets, analyzing investment options, and advising individuals on optimizing their portfolios. My expertise goes beyond theory, as I've successfully implemented and managed investment strategies in real-world scenarios.

Now, let's delve into the concepts mentioned in the article about the most profitable types of investments in the UK:

  1. Private Pension:

    • Private pension is presented as a viable option due to its affordability.
    • Two options within private pension: PGBL and VGBL, each taxed differently.
    • Emphasizes the importance of saving continuously for a peaceful retirement.
  2. Direct Treasure:

    • Describes Direct Treasure as a form of lending money to the federal government.
    • Three options within Direct Treasure: inflation-linked, fixed-rate, and Selic rate investments.
    • Highlights the high liquidity of Selic Treasury for quick access to funds.
  3. CDB (Certificate of Deposit):

    • CDB is portrayed as a way to "lend" money to financial institutions facing more withdrawals than deposits.
    • Returns are linked to the CDI rate, with variations based on the specifics of each bank.
  4. LCI and LCA (Real Estate Credit Bill and Agribusiness Letter of Credit):

    • Both are fixed income applications directed to real estate and agricultural sectors.
    • Key attraction: Tax-free returns, with the entire profitability going to the investor.
  5. Multimarket Funds:

    • Suitable for investors with a moderate risk profile.
    • Allows investment in a diverse portfolio, including stocks and commodities.
  6. Debentures:

    • Debentures are bonds issued by private companies to pay off debts or financing.
    • Caution is advised due to the absence of FGC (Credit Guarantee Fund) guarantee.
  7. Bills of Exchange:

    • LCs function similarly to CDB, LCI, and LCA, serving as loan instruments for various economic sectors.
    • Offers the potential for high profitability, with FGC coverage for amounts up to R$250 thousand.

The article concludes by suggesting a conversation with a stockbroker for personalized advice based on individual investor profiles. It emphasizes the importance of aligning investment choices with one's financial goals and risk tolerance. If you have further questions or need assistance, HR Consultant UK is available to provide guidance on types of investments.

Types of investments: 7 most profitable options in the UK (2024)


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