There’s no getting away from the fact that today’s economic climate makes for a challenging investment environment. Rising inflation has led to higher interest rates, which have wreaked havoc on asset prices across the board. However, regardless of the macroeconomic situation, UK-based investors always have several options for where to park their cash in an attempt to generate a return.
With that in mind, this guide takes a closer look at the most popular investments in the UK, covering the reasons why they’re suited to today’s economic environment. We’ll also provide an overview of the top asset classes available to trade before detailing several effective tactics investors can use to identify potentially lucrative investments.
A Closer Look at the Best Investments in the UK
Those who have opted to buy shares in recent months will understand the need for additional research and analysis before entering the market. Although the financial markets are always fast-paced, this is particularly evident in 2023, given the constant rate increases and geopolitical tensions.
Although nothing in the market is guaranteed, the above assets represent 10 investments in the UK that could have positive returns potential. Wondering what the best way to invest £75k in the UK is? Let’s take a closer look at these investments, covering what they are and why they’re so popular in today’s market:
1. Dash 2 Trade (D2T) – Top Crypto Investment in the UK
Topping our list of the most popular investments in the UK is Dash 2 Trade. Dash 2 Trade is a groundbreaking crypto analytics and social trading ecosystem designed and developed by the team behind the widely-used Learn2Trade platform. Now that Learn2Trade has grown to over 70,000 traders, the team has opted to expand into analytics through the revolutionary Dash 2 Trade project.
This project will offer an online portal featuring a suite of tools that help crypto traders make more informed investment decisions. The need for accurate analysis tools in the crypto market is greater than ever – and Dash 2 Trade looks to meet these needs by providing the following services:
- Regular trading signals for buy and sell positions
- Unique presale dashboard with a bespoke scoring system
- Social sentiment and on-chain analysis of leading coins
- Handy strategy builder tool with backtesting capabilities
- Instant alerts when new coins have been listed on centralised exchanges (CEXs)
- Trading competitions for Dash 2 Trade subscribers
Those who buy cryptocurrency regularly can benefit significantly from these services, as they help clarify what’s going on in the market and empower traders to make better decisions. The entire ecosystem is fueled by the D2T token – an ERC-20 token that enables holders to access the full suite of Dash 2 Trade’s services. Crypto presales have also become popular amongst traders interested in learning how to invest in the UK according to Reddit.
All of the features of Dash 2 Trade’s ecosystem have been designed and developed by experienced traders, ensuring that the data and analysis is actionable. As detailed in Dash 2 Trade’s whitepaper, one of the most important features is the social sentiment indicator. This indicator aggregates data from various sources to highlight trending coins that could experience substantial price movements.
Although Dash 2 Trade will have a free tier, users must hold D2T to access the ‘Starter’ and ‘Premium’ tiers. Early investors can get their hands on D2T tokens through the project’s presale, which commences on November 12th. A total of 35 million D2T tokens will be offered for just 0.0476 USDT each during the first stage of the presale – the lowest they’ll be made available.
Those looking to learn more about Dash 2 Trade can do so by joining the official Telegram channel.
2. IMPT (IMPT) – One of the Best Ways to Invest £10k in the UK
Those wondering how to invest £25k in the UK may also wish to consider IMPT. IMPT has emerged as one of the most talked-about crypto projects on the market, primarily due to its sustainability goals. The IMPT ecosystem focuses on streamlining the process of carbon credits trading – which could be hugely beneficial in the fight against climate change.
Leveraging the power of the Ethereum blockchain, IMPT is able to structure carbon credits as NFTs. This makes them easily tradable between individuals and businesses using IMPT tokens, which use the ERC-20 standard. Given that the value of these credits will be dictated by supply and demand, they even offer speculation opportunities for investors.
As noted in IMPT’s whitepaper, the platform will also enable individuals to acquire carbon credits for free simply by conducting their regular shopping activities. This will be achieved through IMPT’s partnership with thousands of leading brands, meaning that whenever an individual shops with one of them, they will be rewarded with IMPT tokens – which can then be exchanged into carbon credits.
IMPT will also allow individuals to ‘retire’ their carbon credits, which removes them from circulation and effectively ‘eliminates’ carbon dioxide from the atmosphere. Those who take this eco-friendly approach will be given a unique digital artwork NFT, which can also be traded on IMPT’s marketplace.
These compelling features have already created a tremendous buzz around IMPT, with thousands of people now part of the project’s Telegram channel. Although IMPT is still in development, investors can get involved early by purchasing IMPT tokens through the presale. Some market analysts consider IMPT to be one of the best ways to invest £5k in the UK in 2023.
IMPT’s presale has raised over $5m at the time of writing, with nearly 300 million IMPT tokens told. Investors can still buy IMPT tokens for just $0.018, using either USDT or ETH. Once the allocation sells out, the token price will increase to $0.023, meaning now is the only time investors will be able to attain tokens at their lowest price.
3. SPDR S&P 500 ETF (SPY) – Passive Investment for Tracking the US Stock Market
Those who have £10k to invest and are looking for an asset to hold long-term may wish to consider the SPDR S&P 500 ETF. This ETF can be invested in using many popular trading platforms since it is one of the largest index funds in the world.
As the name suggests, the SPDR S&P 500 ETF emulates the S&P 500 – a market index tracking the performance of the 500 largest publicly-traded companies in the US. According to Forbes, the S&P 500 is often used as a proxy for the overall health of the stock market and the US economy.
This ETF is so popular since the S&P 500 has generated positive returns on average since its inception. In its current form, which began in the 1950s, the S&P 500 has generated an annualised return of 11.88%.
Due to this, many investors opt to place their capital in the SPDR S&P 500 ETF and leave it for years – or even decades. Some even opt for a dollar-cost averaging approach to compound their position, making it one of the most popular investments in the UK when saving for retirement.
4. WTI Crude Oil – Popular Commodity with Numerous Important Uses
Another of the investments in the UK that have attracted attention in recent times is WTI Crude oil. Crude oil is a type of fossil fuel that is key to creating products like gasoline, diesel, and liquefied petroleum. Importantly, crude oil is a finite resource, meaning its value is influenced by the laws of supply and demand.
Crude oil is viewed by many market analysts as the world’s most important commodity, as it is necessary to fuel vehicles and ships and also to power production plants. Much of the oil supply is controlled by OPEC, which is an organisation that represents some of the world’s largest oil-exporting countries.
Investors can buy oil using day trading platforms and investment apps to gain exposure to its price fluctuations. At the time of writing, OPEC has decided to cut the oil supply by two million barrels per day. This move is designed to reduce supply and put upwards pressure on price – which may provide an investment opportunity for investors with a higher risk appetite.
5. Tamadoge (TAMA) – Best £10k Investment of 2023 for High Returns Potential
Those wondering what to invest in with £10k may find Tamadoge an appealing prospect. Tamadoge is a new crypto project that has recently wrapped up one of the best crypto presales of the year, raising a remarkable $19m in a matter of weeks. Investors can now buy TAMA tokens through leading CEXs/DEXs like OKX, Uniswap, MEXC, and LBank – highlighting its dramatic rise.
Tamadoge’s combination of a meme-coin aesthetic and real-world utility has made it a hit with investors. Within the ecosystem, players can mint ‘Tamadoge Pets’ and use them to battle others. This ‘play-to-earn’ (P2E) process enables players to earn TAMA rewards through skilled gameplay, which can be spent in-game or held to benefit from price fluctuations.
Tamadoge’s team has also recently launched a collection of ‘Ultra-Rare’ TAMA NFTs, giving the owner a higher chance of winning PvP battles. Moreover, the team has even revealed plans for Tamadoge-themed arcade games and an augmented-reality (AR) app – hinting that Tamadoge’s growth is just getting started.
6. Unilever (ULVR) – Defensive Stock Listed on the FTSE 100
Unilever is a UK-based consumer goods company that owns an array of well-known brands. These brands include Dove, Lynx, Ben & Jerry’s, Persil, Hellman’s, Magnum, and more. Given this diversified selection of brands, Unilever is often defined as a ‘defensive stock’.
According to Business Insider, defensive stocks are among the best shares to buy UK as they can provide stability to an investment portfolio, regardless of how the market or economy is doing. Due to this, Unilever is well-suited to today’s volatile business environment since consumers will still require the company’s products, even if they have less discretionary income.
At the time of writing, the ULVR share price is up 19% from the lows of March 2022, highlighting the company’s resilience during these testing times. Furthermore, the share price tends to be less volatile than other FTSE 100 stocks, meaning it may represent an investment opportunity for those with a low risk tolerance level.
7. Gold – Traditional ‘Safe Haven’ with Discounted Value
Gold has garnered a reputation as a ‘safe haven’ asset, meaning that many investors will buy it during bear markets. This tends to be because other asset classes, like stocks and ETFs, are experiencing significant price decreases – so investors require somewhere to park their capital to preserve value.
However, gold’s ‘safe’ reputation has taken a hit recently, as more investors than ever are looking towards alternative assets like high-yield bonds. This has led to a broad sell-off within the gold market, causing the price to fall by nearly 20% from March 2022’s highs.
Although this may seem like a negative, many analysts now believe that gold is trading at a discount. At the time of writing, the gold price is just $1654 per oz – the lowest since March 2020. Given this low price, there could be scope for double-digit returns if gold rebounds in the coming months.
8. Vanguard Total Bond Market ETF (BND) – Leading ETF for US Bond Market Exposure
Those looking to make a £10,000 investment (or any other large amount) may find the bond market more appealing. This is because the best bonds UK, especially government bonds, tend to offer a ‘risk-free’ way of generating a return.
Due to the harsh macroeconomic conditions, bonds have become more appealing in recent months. This is why investors may wish to consider the Vanguard Total Bond Market ETF, as this fund provides broad exposure to the USD-denominated bond market.
According to the Vanguard website, this ETF has generated a positive return in seven of the last nine years. It also has an expense ratio of just 0.03% – much lower than the average expense ratio of similar funds. Although annual returns rarely exceed 6%, the Vanguard Total Bond Market ETF may be a suitable option for those more interested in preserving the value of their capital.
9. iShares Core FTSE 100 UCITS ETF (ISF) – Widely-Used ETF for Exposure to the UK Stock Market
As its name suggests, the iShares Core FTSE 100 UCITS ETF is a fund that looks to track the performance of the FTSE 100 index. The FTSE 100 is comprised of the 100 companies listed on the London Stock Exchange (LSE) that have the highest market capitalisation.
Investors wondering how to invest £10k may find this ETF appealing, given that the FTSE 100 has a long-standing reputation for providing positive annual returns. Since it launched in 1984, the FTSE 100 has delivered an average annual return of 7.75% – which means the iShares Core FTSE 100 UCITS ETF offers a suitable opportunity for compounding.
Moreover, investing in the iShares Core FTSE 100 UCITS ETF is well-suited for those with little experience in the market since there’s no requirement to pick stocks. Finally, with an expense ratio of just 0.07%, investors can hold this ETF for years (or even decades) without accruing any substantial fees.
10. Ethereum (ETH) – Top Blockchain Network with Huge Potential
Rounding off our list of the most popular investments in the UK is Ethereum. Many people opt to buy Ethereum as an alternative to Bitcoin since it is often cited as having a much higher ceiling.
As a blockchain network, Ethereum offers a foundation for decentralised app (dApp) developers to construct their platforms. This means Ethereum has become a hub for some of the most exciting areas of the crypto market, ranging from decentralised finance (DeFi) to NFTs.
Ethereum has recently transitioned to a ‘Proof-of-Stake’ (PoS) consensus protocol, making the network harder to attack and much more energy-efficient. Although the ETH price is down over 60% since the beginning of 2022, many crypto analysts believe this blockchain is the future – meaning a potentially-lucrative rebound could be on the cards soon.
Types of UK Investments
When looking for investments in the UK with positive returns potential, it’s vital to understand the various asset classes on offer. Below are some of the most popular asset classes that UK investors may wish to consider:
One of the most popular asset classes in the UK is cryptocurrency. Although most people opt to invest in Bitcoin, there are hundreds (if not thousands) of altcoins that can offer similar or better performance.
Crypto is also a popular option for investors looking to diversify their portfolios. Although cryptocurrencies and equities have become more correlated in the past year, many coins can still act as a hedge against pricing risk in the stock market. Most cryptocurrencies can be accessed via the most popular decentralized exchanges on the market.
Ever wondered what the best way to invest £20k in the UK is? Stocks represent a share in the ownership of a particular company, meaning stock investing is an ideal way to gain exposure to that company’s growth. Although investing in individual stocks is an option, most investors opt to create a portfolio comprised of numerous stocks to improve their risk/return ratio.
Stocks are considered risky compared to ‘safer’ assets like bonds – yet tend to offer higher returns during periods of positive performance. Moreover, stocks are perhaps the most easily-accessible financial instrument since they can be bought using most investment apps and trading platforms. Some investors even prefer to open a stocks and shares ISA because of the tax benefits they offer. With an ISA account users do not have to pay capital gains tax or income tax on profits made from investments made within the Individual Savings Account.
Exchange-Traded Funds (ETFs)
Ever wondered how to trade ETFs? Exchange-traded funds (ETFs) are pooled investment vehicles that track a specific index, sector, or commodity. ETFs are listed on major stock exchanges, meaning that investors can buy and sell them in the same way as equities.
Since ETFs invest in numerous assets, they offer a suitable option for investors interested in passive investing. In addition, many ETFs track major indices like the S&P 500 or the FTSE 100, allowing investors to gain exposure to the broader equity market.
Like ETFs, mutual funds are pooled financial instruments that invest in assets like bonds, stocks, and commodities. These mutual funds are managed by experienced money managers who decide which assets to invest in and how the fund’s portfolio should be structured.
The key difference between ETFs and mutual funds in the UK is that the latter are not listed on stock exchanges. Instead, investors must use a professional brokerage or financial institution to invest in mutual funds, meaning they’re often more appealing to those with a higher capital base.
As defined by Standard Life, bonds are a type of fixed-income instrument that is akin to lending money to a government or corporation. The loan amount is returned at the end of the designated period, with the lender also receiving regular interest payments throughout the bond’s lifespan.
Although there’s an element of risk with all assets, buying investment-grade government bonds is the closest thing to a ‘risk-free’ investment. However, bonds tend to offer a low rate of return relative to other assets, meaning they might not be suited to more speculative investors.
Non-fungible tokens (NFTs) are a relatively new asset class connected to the cryptocurrency market. Each NFT is unique and is hosted on the blockchain, usually representing a real-world asset like artwork or property.
Using NFTs, creators can ‘tokenise’ their creations, meaning they can be bought and sold using crypto. Many NFT collections, such as Bored Ape Yacht Club, have sold for millions of dollars – yet since these assets aren’t fully understood, their values can still be highly volatile.
Those wondering what to invest in with £10k may also wish to consider commodities. Commodities are the raw materials used as inputs in the production process and include items like oil, gold, grain, beef, and natural gas.
Investors can speculate on the price of these commodities in the spot and derivatives markets without owning the underlying item. Like many other assets, commodities can be an excellent way for investors to diversify their portfolios – especially if they lean towards equities.
Finally, UK-based investors may also wish to buy and sell currencies. This process, usually referred to as forex trading, allows investors to benefit from the constant price fluctuations in the world’s major currencies.
Currency prices are affected by countless factors, ranging from data releases to elections, meaning that forex trading can often be quite risky. Moreover, this asset class is more suited to those looking for a short-term investment UK due to the overall volatility.
How to Find the Best Investments with High Returns
Whether investors have £10k to invest or £100k to invest, it’s crucial to understand how to identify assets with high returns potential. Although there’s no foolproof way to achieve this, presented below are three approaches which can help investors uncover enticing opportunities in the market:
Analyse the Asset’s Financials
When making a £10,000 investment (or any amount), the most important thing to do is analyse the asset’s financials. Using stocks as an example, this may involve examining the following:
- Price history
- Earnings per share (EPS)
- Price-to-Earnings (P/E) ratio
- Financial reports
The exact metrics will vary depending on the asset, but reviewing the underlying financials can give investors an idea of whether the asset will likely generate a positive return during the investment timeframe. Many leading financial media outlets, such as the Financial Times, offer free financial data on thousands of assets.
This also applies to anyone looking for the best ways to invest £100k in the UK in 2023.
Be Aware of Economic Factors
When researching potential assets, it’s also crucial to understand the macroeconomic situation. At the time of writing, inflation is still sky-high, meaning central banks around the world are frantically raising interest rates to reduce inflation and protect the economy.
Situations like this will naturally affect all asset classes in some way, meaning investors must understand how certain assets react. For example, rising interest rates hurt companies with lots of debt, as it means servicing this debt is more expensive. However, higher rates may benefit banks since they can generate more interest income through their lending actions.
Utilise Social Media
Finally, UK-based investors can also use social media to uncover assets that may provide high returns. An asset’s price movements can be heavily influenced by hype generated via retail traders on social media – so keeping track of which assets are trending can be a great move.
It’s essential to combine any social media-based research with additional forms of analysis to ensure confluence. This is because many people on social media have an emotional bias towards the asset they’re discussing, meaning that the information presented may not be completely objective.
Best Investments in the UK – Conclusion
To conclude, this guide has presented 10 of the most popular investments in the UK, exploring the various reasons why they are so highly regarded in today’s macroeconomic climate.
Those wondering where to invest £10k (or any amount) may wish to consider Dash 2 Trade. This revolutionary platform offers a suite of helpful trading features, such as trade signals and social sentiment indicators, to ensure investors have the tools they need to make informed and effective decisions.
D2T tokens are required to access the full capabilities of the Dash 2 Trade platform, with investors able to buy these tokens from November 12th through the presale. Only 35 million tokens will be made available during Stage One, each priced at just 0.0476 USDT – the lowest price that they’ll be offered.