How to Invest a Million Pounds?
Wondering how to invest a million pounds is a nice kind of problem, and you’ll have a lot of fun solving it. But in the end you’ll probably find out that investing a million pounds is not that difficult. The key is to make safe investments and build a diversified portfolio, so that if some investments don’t work, the others can still bring you nice profits. Here are some tips on how to invest a million pounds.
One thing you must consider before investing a million pounds is whether the money is borrowed. If it is, then the interest rate will probably amount to at least £60,000 annually. Just to be safe, you’ll want to set aside the full – or, if you want to take a risk, partial – value of the loan, and use for investments what remains.
Then you’ll have to decide what kind of projects you will want to invest in. Broadly speaking, when you want to invest a million pounds, there are safe investment projects that can bring you a low 1-2% return a month, or risky ventures that can bring you 10-20% a year. Ideally, you will want to allocate most of your funds to safe investments, and use what remains for risky ventures.
Next you have to decide where to invest your money. It’s usually safer to put your money in the domestic financial markets. Real estate and especially London properties, rising companies, stock exchange, are just some of the options. Invest in short term as well as long-term projects.
Say you put 60% of your money in local investment opportunities. Half of what remains can be put in commodities like gold, platinum, wine, and even art. The other half is for foreign investments. Think of Africa, Brazil, India, and Europe. It’s from foreign investments that the big cash often comes.
Still have some questions about how to invest a million pounds? The experts at Compare the Financial Markets can help you make the right decisions.
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