Do not let your savings stay idle for a long term period. Let your resources work for you by generating wealth. By investing, you earn good interest rates or get an appreciation in value.
The UK is an important financial market for investors and is the world’s largest financial hub. It is well structured which accounts for its stable security market. The London stock exchange has about 3,000 companies listed and it is the third biggest stock exchange. Don’t get left out, 8.62 million people in the UK registered for stock and share ISA accounts in 2017.
Investments start with the first pound for beginners and it is never late to start.
Five golden rules: there are rules to help you invest wisely. These are:
- To get more returns, you need to take more risks
- Diversify your investment to reduce your risk exposure.
- It is best to invest for at least five years
- Regularly review your portfolio.
- Stay focused and do not panic by unnecessarily selling or buying shares.
Best sectors to invest
There are numerous areas you can invest in to get profitable returns. The following are best sectors you can invest in 2019:
- Health care sector: there are enormous possibilities to invest within the health care sector. Over the last decade healthcare has done well and the trend will keep growing. Individual investors stand to profit massively because healthcare is the fastest growing sector.
- Aging population: the UK population is aging with an increasing demand for care-related items.
- Health care vendors: healthcare provides a windfall for vendors. There is a gap to provide needs in the UK healthcare sector.
- Pharmaceutical performance: pharmaceutical giant, GlaxoSmithKline in the UK strongly paid above 5% in dividends. It solidly stands unaffected by Brexit and has set aside £70m for its diversification. Huge investments are foreseeable with the UK currently making up only 4% from total sales.
- Energy sector: energy is the most important market sector and is valued at about $7 trillion globally. By 2035, the demand for energy globally will increase by 30%. Nine of the ten global companies which earn highest annual returns are from the energy sector and many of them continue to land a major share of public sector contracts. Governments have money to spend on utilities, ensuring that this industry is secure for the long term.
- Electricity and gas: companies in the UK handling gas and electricity supply are making huge profits. National Grid, the UK’s biggest utility company paid dividends at 5.4% and marches into 2019 looking at growth potentials. It generated a £3.5bn profit from a £17bn revenue base. National Grid foresees 7% growth in the near term period with a 5 to 7% growth in the medium term duration.
- Domestic laundry and cleaning – FMCG sector: there is continuous boom in sales accounting for over £33m in domestic cleaning and laundry items annually. Reckitt Benckiser is a clear leader delivering over £5.9bn in the UK. It is in its fifth year running with continuous huge profit returns. UK shoppers clamor for its portfolio range (Dettol, Nurofen, Vanish, Durex, Airwick and Cillit Bang) of products. It recently acquired Mead Johnson at $17bn.
Let your investments do the work for you and generate wealth. Apply the five golden rules to invest wisely. Look into the three key sectors of the economy doing nicely to invest into. They include the health care, energy and the domestic cleaning sector markets.