Top 10 Investments to Make Money

If you’re looking to grow your wealth and secure your financial future investing your money can be a great way to achieve these goals. However, there are so many investment options out there that it can be tough to choose the right one for you.

At Grove Gallery, we’re here to help. In this guide, we’ll be breaking down the top 10 investments to make money, covering everything from low-risk options such as high-yield savings accounts to higher-risk options such as cryptocurrency and real estate.

How Can I Start Investing?

Before we explore the specific investments, let’s determine how to actually get started. It’s important to consider your own financial situation and investment goals - including your risk tolerance, your time horizon, and your budget.

Consider Your Risk Tolerance

Your risk tolerance refers to your willingness to tolerate fluctuations in the value of your investments. Some people may be comfortable with higher levels of risk in exchange for the potential for higher returns, while others prefer safer, more stable investments.

Be sure to consider how much risk you’re willing to take on. If you’re looking for a short-term investment and don’t want to tolerate any potential fluctuations, then high-risk investments may not be for you.

Consider Your Time Horizon

Next, consider your time horizon. This is the length of time you are willing to hold onto your investment before needing to access the money. If you have a longer time horizon and opt for a long-term investment, you may be able to take on more risk as you will have more time to ride out market fluctuations.

On the other hand, if you have a shorter time horizon, you may need to prioritise investments that offer more stability.

Consider Your Budget

Before you take the plunge and invest a lump sum of money, be sure to consider your budget and determine how much you’re willing to invest, or how much you can afford to invest.

Some investments may require a significant lump sum upfront, whereas others allow may you to start with smaller amounts and gradually build your portfolio over time.

How Much Money Do I Need to Start Investing?

Whether you’re looking to invest £25,000, a larger amount of £50,000, or a larger lump sum of money, there is a perfect option for you out there. One of the great things about investing is that you don’t need a large sum of money to get started.

There are many investment options that allow you to invest with just a few hundred pounds - or even less. Ultimately, the amount you need will depend on the investment avenue you choose and your own financial situation.

What Are The Best Investments to Start Making Money?

Now that you’ve considered your risk tolerance, time horizon, and budget, let’s explore the top 10 types of investment to make money:

1 - Art Investment

First of all, we have art investment. Investing in art - whether it be paintings, sculptures, or collectables - can be a great way to diversify your investment portfolio and potentially achieve high returns.

This is a great choice if you’re an art lover - it’s a chance to turn passion into profit. As a tangible investment, art is something you can enjoy. Unlike many other alternative investments (for example, whisky investment), the value of art won’t decrease when you enjoy it. Some art investments can be riskier than others.

If you’re looking for a safe investment, we recommend investing in blue-chip art. This could involve artwork from artists such as Banksy, Picasso and Andy Warhol - artists with a history of stability on the art market. However, if you’re looking for a higher-risk investment with potentially higher returns, you could consider investing in new, emerging artists.

You can buy these artworks with very little starting funds, and if the artist rises in popularity, you can sell them for a huge profit. Art investment requires a firm knowledge of the art market, including factors such as provenance, authenticity, and market trends. An art advisor can guide you through the process and ensure you get the most out of your investment.

2 - High-Yield Savings Accounts

Next, we have high-yield savings accounts. This is high on our list as it’s a low-risk option if you want to earn a higher return on your cash savings. These accounts typically offer interest rates - rates significantly higher than traditional savings accounts. This means your money will grow over time with minimal risk.

3 - Bonds

Bonds are debt securities issued by governments, municipalities, or corporations. When you buy a bond, you are essentially loaning money to the issuer in exchange for regular interest payments, and, of course, the return of the original amount of money you lent at maturity.

Bonds are generally considered safer investments than stocks. They’re a great choice if you’re looking for a steady income as well as capital preservation.

4 - Mutual Funds

Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. Mutual funds are managed by portfolio managers - they will make investment decisions on your behalf. This investment avenue offers instant diversification and can be a great choice regardless of your risk tolerance or investment goals.

5 - Index Funds

Index funds are a type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific market index, such as the S&P 500. Because index funds passively track the performance of an index rather than trying to beat the market, they tend to have lower fees and can be a cost-effective way to invest in the stock market.

6 - Peer-to-Peer Lending

Peer-to-peer lending platforms can connect you with individual borrowers. You will lend money, and in return, get regular interest payments. This method cuts out traditional financial institutions and can lead to potentially higher returns. Before opting for peer-to-peer lending, be sure to carefully assess the creditworthiness of potential borrowers, and research the risks involved.

7 - Cryptocurrency

Next, we have cryptocurrency, such as Bitcoin and Ethereum. This investment avenue has rocketed in the last few years, with more and more options becoming available. This route has the potential for significantly high returns.

That being said, cryptocurrency can be highly volatile, and be subject to regulatory and security risks. Be sure to approach cryptocurrency with caution - and only allocate a small portion of your portfolio to this asset to minimise risk.

8 - Gold

Gold has been used for money for over 6,000 years - it has long been considered a safe investment, and a hedge against inflation and economic uncertainty. There are several options available if you want to invest in gold, such as gold bullion or gold-backed exchange-traded funds (ETFs).

Gold may not offer the same potential for high returns as riskier assets - however, it can provide stability and diversification in a well-rounded investment portfolio.

9 - Real Estate

Real estate investment trusts (REITs) are companies that own, operate, or finance income-generating real estate across various property sectors. Investing in REITs can give you exposure to the real estate market without the hassle of buying, managing, or financing properties directly.

REITs often pay dividends, making them a popular choice for income-oriented investors seeking long-term capital appreciation. If you want a more hands-on approach, you could invest in real estate directly.

This would involve purchasing a property with either a buy-to-let mortgage or the funds in full. However, there are additional costs to consider, such as maintenance fees, sourcing tenants, and cleaning costs.

10 - Alternative Investments

Finally, we have alternative investments such as private equity, hedge funds, and commodities. Alternative investments refer to assets outside of traditional options like stocks and bonds. These avenues offer opportunities for higher returns - however, they can also come with higher risks and less liquidity than traditional investments.

If you wish to invest in alternative investments, we recommend conducting thorough research to gain a firm understanding of the market. It can be helpful to liaise with a financial advisor or an industry specialist to determine the right approach for you.

How Do I Know Which is Right For Me?

• Your risk tolerance
• Your time horizon
• Your level of experience
• Your financial goals

If you prefer safety, opt for low-risk options like high-yield savings accounts or bonds. If you're comfortable with risk and have a longer time horizon, consider stocks, real estate, or alternative assets for potential higher returns.

So, define your financial goals, whether it's retirement, a down payment, or education savings, and choose your investments accordingly. Diversify your portfolio across various asset classes to spread risk and optimise returns.

Remember to be mindful of taxes and fees, and conduct thorough research on each option, understanding its performance, risks, and benefits. It can be helpful to consult with a financial professional who can offer guidance and help you make the right decision. Ultimately, your investment strategy should reflect your unique financial situation and objectives.