Investing is a smart way to grow your money over time. With £100,000, you have a significant amount of capital to work with, and there are many investment options available to you.

However, with so many options, it can be overwhelming to know where to start. In this article, we will explore some of the best things to do with £100k by giving you an overview of ten popular investment strategies.

Stock Market

Investing in the stock market is one of the most popular ways to grow your wealth over time. There are many different ways to invest in the stock market, including buying individual stocks, mutual funds, or exchange-traded funds (ETFs).

The key is to do your research and choose investments that align with your risk tolerance and investment goals.

If you’re new to investing, consider starting with a low-cost index fund that tracks the performance of the broader market.

Index funds are a good choice because they provide diversification, which helps to reduce risk. They also have lower fees than actively managed funds, which can eat into your returns over time.

Property

Real estate can be an excellent way to grow your wealth over time. There are many different ways to invest in property, including buying rental properties, flipping houses, or investing in real estate investment trusts (REITs).

Rental properties can provide a steady stream of passive income, but they also require a lot of work and management. Flipping houses can be more profitable, but it requires a higher level of skill and experience.

Investing in REITs can be a good option for those who want to invest in property without the hassle of managing properties themselves.

Bonds

Bonds are a type of fixed-income investment that can provide a steady stream of income over time. They are essentially loans that investors make to governments or corporations, and in exchange, they receive interest payments on a regular basis.

Bonds are generally considered to be less risky than stocks, but they also provide lower returns. If you’re looking for a low-risk investment option, consider investing in government bonds, which are generally considered to be the safest type of bond.

Cryptocurrency

Cryptocurrency is a relatively new investment option that has gained a lot of popularity in recent years. It is a digital currency that uses cryptography to secure transactions and to control the creation of new units.

Cryptocurrency can be a high-risk investment, but it can also be very lucrative. Bitcoin, for example, has seen massive growth over the past decade, with its value increasing from less than £1 in 2010 to over £60,000 in 2021. However, cryptocurrency is also very volatile, and its value can fluctuate wildly in a short amount of time.

Invest in a Business

Investing in a business can be a high-risk, high-reward proposition. If you’re interested in investing in a business, consider partnering with a friend or family member who has experience in the industry. This can help to reduce risk and increase the chances of success.

Alternatively, you can invest in a startup through crowdfunding platforms like Kickstarter or Indiegogo. This can be a good way to invest in a promising startup without having to put up a lot of money.

Peer-to-peer lending

Peer-to-peer (P2P) lending is a relatively new investment option that allows individuals to lend money directly to borrowers, bypassing traditional financial institutions.

P2P lending platforms typically offer higher interest rates than traditional savings accounts or bonds, but they also come with a higher level of risk. It is important to thoroughly research the P2P platform and understand the risks involved before investing.

Gold and precious metals

Investing in gold and other precious metals can be a good way to diversify your portfolio and protect against inflation.

Gold and precious metals are often seen as a safe-haven asset during times of economic uncertainty. You can invest in physical gold, gold ETFs, or gold mining stocks.

Art and collectibles

Investing in art and collectibles can potentially provide high returns, but it also requires a significant amount of knowledge and expertise. Art and collectibles can include anything from rare coins and stamps to paintings and sculptures.

It is important to do your research and work with an experienced appraiser or advisor before investing in art and collectibles.

Retirement accounts

Investing in a retirement account, such as an individual retirement account (IRA) or a 401(k), can be a great way to save for retirement and receive tax benefits.

Retirement accounts typically offer a range of investment options, including stocks, bonds, and mutual funds.

Invest in yourself!

Finally, one of the best ways to invest your money is to invest in yourself. This can mean taking classes or courses to improve your skills, starting a business, or even traveling the world to gain new experiences.

Investing in yourself can pay off in many ways, from increasing your earning potential to improving your overall quality of life. Plus, it’s a way to ensure that you’re always growing and learning, which can be give you a deeper understanding into what works best for you.