Savings and Investments

There are many different ways to invest and the way in which you do invest is important according to your
aspirations, tax position and your attitude to risk.

There are 4 main areas of investment, these are;

  • Cash
  • Fixed Interest
  • Equities
  • Property

There’s far too much detail to explain on the website and investing should always be done according to your own circumstances and most often getting personalised specialist advice from an Independent Financial Adviser can enable you to make the right investment choices and help you achieve your financial objectives effectively.

Investing in cash and fixed interest investments are most useful for producing a regular income and protecting your capital. These are also useful when you may want access to your capital in the near future usually defined as within the next 3 years. Although cash and fixed interest are generally considered as being low risk there is always the risk that returns may not keep up with inflation and therefore this poses the risk that your capital may not have the same ‘buying power’ in the future as it does at the time of investment.

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Cash Investments

Cash investments are best suited to capital that you may need immediately such as a rainy day fund or emergency fund. These types of investment usually come in the form of current accounts and usually have no entry or exit fees.
Cash investments can usually be made directly or indirectly through a unit trust. It is also worth noting that cash investments usually have lower returns than fixed interest investments.


Fixed Rate Investments

Fixed Interest investments cover a wide range of investments from banks’ deposit accounts through to government and corporate bonds. Government and corporate bonds are effectively a loan to that government or company in return for a regular income (often referred to as a coupon) and at the end the term or maturity your initial capital investment will be returned.

Fixed interest investments also come with an element of risk and it should be noted that investments in tradable bonds is influenced daily by interest rate movements. They also have a set rate of interest which can pose a threat when interest rates change.

Fixed interest investments can be made directly or indirectly though unit trusts.



Equities, also known as stocks, represent shares of ownership in publicly held companies. Historically equities have outperformed other investments such as bonds, Treasury bills, gold or cash over the long term however, when
investing it should be noted that past performance should not be used as an indicator of future performance.

In terms of risk, this type of investment poses significantly more risk than cash or fixed interest however it also carries the chance of better returns. Due to the fluctuating nature of equities it’s important to look at such investments as a medium to long term investment.

In terms of investing in equities, there are many ways of doing so including through pooled investments such as investment bonds and unit trusts as well as enterprise investment schemes, venture capital trusts and also direct investment in shares. Each way of investing carries its own level of risk and tax implications and each should be given careful consideration before investing.


Property Investments

In terms of property there are 3 main ways to invest these are residential, buy-to-let and commercial.

An individual’s own property is seen as a good investment for the future providing capital appreciation over the long term and the option to ‘rent a room’ provides an opportunity for additional income.



Buy-to-Let – A more popular way of investing in property through purchase with the intention of letting out the whole property. Returns of regular income in addition to the long term capital growth of the investment make this an attractive option to many individuals however, again this doesn’t come without risk.



Commercial – For the more experienced or corporate investor covering shops, office buildings and warehouses. Commercial property tends to follow a cyclical pattern that does not always follow the as the returns of equities and residential property. This is mainly due to supply and demand which in itself poses a risk to the investor and is also an illiquid asset.


Contact Us regarding Savings and Investment Advice

For more information on savings and investments, then call the team on 01332 223888 or email us at – Alternatively, complete our form below and one of our Financial Advisers will contact you shortly.