how best to invest a sum of £30,000 for the highest return

supo99

I have a sum of £30,000 to invest. I am looking to get the highest return as much as possible.

I know this would be difficult in the financial climate I am not risk adverse and I am well aware of the danger in investing in high-risk areas.

all I want to know is what is genuinely out there, that will give me the highest income possible. I am interested in spread betting and share trading. Although I have been trading shares for many years on an ad hoc basis, and have made it a bit of money overall, I have not dabbled into spread betting. I know spread betting is a high-risk way to make money and require a lot of knowledge. I have already read three books on spread betting and also watched a lot of videos.

I will appreciate your ideas. Thanks in advance!

sorcerer

be carefull when its comes to spread betting if you are prepared to potentialy loss the whole of £30,000 and possibly more if you have a margin call that's fine. For a novice invester i would suggest you stay away from it.

Have you considerd corporate bonds perhaps, some big companes offter 5-6% a year, but as always, do you research before you commit.

Linton

The highest return possible would perhaps be to put it all on the lottery. But of course that might be considered a little too risky. OK lets cut down the risk somewhat. You suggest spread betting. The problem is that its a zero sum game - whatever you win someone else has to lose plus a bit more as charges. What makes you think you can beat the large majority of punters and make significant profit? I suggest that reading books and watching videos is not an adequate education for someone playing with £30K.

A better option would be to use your deep knowledge and experience, if any, in some potentially lucrative field such as stamps, antiques, fine wines, poker etc. If that's not right for you, you could consider investing for the long term in a diversified set of funds investing in higher risk sectors. For example small companies, emerging or even frontier markets, technology. Perhaps individual mining shares would appeal, though some industry knowledge would be helpful.

Whatever higher risk investments you make you do need to ensure that you have more than enough money in savings and safe investments to ensure that you can cover any emergency without having to sell those higher risk investments at a bad time.

jimjames

Your question is - what will give me the highest income possible - is this really what you mean? Or do you mean highest return?

The highest return may not actually produce any income at all. Do you need the income now or can you wait until a future date for income?

gadgetmind

supo99 wrote: »

I know this would be difficult in the financial climate I am not risk adverse and I am well aware of the danger in investing in high-risk areas.

Our of interest, what would you describe as being a high risk area?

donniej

As you say, spread betting is very high risk.

Let me say that again for effect: very high risk.

Whilst the desire to gain high returns is laudable, do bear in mind that if it were easy, everyone would be doing it. There are highly paid, well educated professionals who spend all day trying to achieve high returns. Doing better than them is not impossible, but is quite difficult, and (I'll say it again) high risk.

gadgetmind

However, if you do decide to spread bet, please use IG Group as my wife is a shareholder.

supo99

Thanks for the replies. I am looking for the highest return. I don't see myself as smarter than everyone - just looking for options. I will not depend at all on the £30000 as I can live without it. I am looking for where it can work best for me. I have thought about bonds, shares, but I will like to get feelers from everyone here. If you are suggesting anything, please try and be specific

bigadaj

No one is going to be specific as that could be classed as advice and no one is regulated to do that in this environment.

Your options are either to go to an IFA and get it done, which will have no guarantee of a good return and costs a reasonable sum in fees, or do your own research, including investments books, publications and internet.

You need to do some research and come back with some ideas, taking advice from some randoms on an unregulated forum about where to invest significant sums is crazy.

koru

I'm sure I read somewhere that the return offered by football pools is much better than offered by the lottery or premium bonds. By return, I mean the amount paid out as winnings as a percentage of the amount paid in by punters. In other words, the cut taken by the football pools company is smaller than the cut taken by other types of gambling. I'm not sure how this compares with spread betting, however.

grey_gym_sock

roulette might offer the best return from gambling ... the expected return is 36/37 = c. 97.3%

though that's european roulette ... american roulette wheels have an extra 0, which reduces the expected return to 36/38 = c. 94.7%

see http://en.wikipedia.org/wiki/Roulette