Make The Most Of Your Assets: £1,000 A Month Or More - Life - Stylist Magazine

What to invest in: £1,000 or more per month

How to make the most of your assets

From fashion to diamonds, wine to art, Stylist reveals the savviest ways to invest your cash as part of our Make The Most Of Your Assets feature.

1. Gold

What is it? The sparkling stuff, of course. You can either buy gold (gold krugerrand’s gold coins are £927 each) or a 1kg gold bar costs £29,000 from the Gold Bullion Company (thegoldbullion.co.uk) or you can invest in a gold fund, like BlackRock Gold & General, which invests in gold, mining and precious metals (blackrock.co.uk).

How much could you make? Blackrock Gold & General fund grew by 23% in the past year and JP Morgan Natural Resources fund (jpmorganassetmanagement.co.uk) returned 33%. That’s a return of around £3,960 on an annual investment of £12,000. On average it has grown by 28% over the last three years and by 124% in total over the past five years.

What’s the risk? Investing in a collective fund reduces the overall risk as holding gold bars in their physical form requires insurance.

2. Special situations funds

What is it? There is money to be made in companies that have fallen in value – they can be bought for a bargain price and can be ripe for growth. You can buy into these companies through one of the most successful funds, M&G Recovery Fund (mandg.co.uk).

How much could you make? On a yearly investment of £12,000 you can expect an average return of 10% (around £1,200). Jupiter Special Situations collective fund returned around £120 on that figure last year.

What’s the risk? High risk, but with potentially high returns as these funds tend to invest in smaller companies with a more volatile share price.

3. Technology shares

What is it? Wish you’d put your money into Apple way back before the iPod was born? Technology companies are seen as giving high growth in the future, and you can either buy individual shares or a slice of a technology fund, such as AXA Framlington Global Technology fund, which returned 27% last year.

How much could you make? The industry average was between 25% and 30% last year, so a £1,000 monthly investment would have made you somewhere between £2,500 and £3,000 a year.

What’s the risk? High, these companies can fail at the research stage, sky rocket to success or do anything in-between.

Tags: money, investment