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.
Be a business angel
What is it? Using your money to support small companies at the point of expansion. The British Business Angels Association (bbaa.org.uk) is dedicated to promoting angel investing and supporting early stage investment in the UK, a great place to start your research.
How much could you make? According to angelsden.co.uk, investors usually seek to double their money in three years. But it can be much higher. Drugs development company Evotec OAI was set up in 1991 with angel backing and sold for £3.7m in 1998.
What’s the risk? It’s a relatively high-risk venture as you will be investing in small, growing individual companies.
What is it? The only way to invest in this market is to buy a vehicle, so make sure you have the space to keep it safe. Research the investment potential of brands before you buy, specialists like H&H Classic Car Auctions (classicauctions.com) can give you advice.
How much could you make? Returns depend on the make and model of the car. For example, an AC Ace sold for around £100,000 a few years ago, and is now selling for around £150,000. But the market for Ferraris has fallen, with the value of a Ferrari 275 GTB/4 falling to £750,000 from £900,000.
What’s the risk? High risk as you will have a physical asset that can be damaged, so make sure you invest in something that you love.
What is it? Everything from Pollock’s paintings to Gormley’s sculptures. There aren’t any regulated ways to currently invest in art shares, so buy a piece you love that will hopefully rise in value. Research is the key to making money in this market. Join the mailing lists of auction houses like Sotheby’s (sothebys.com) and Christie’s (christies.com) for information. You can also go to auctions for free, giving you an insight into what is selling.
How much could you make? The Mei Moses Fine Art Index (artasanasset.com) shows art was up 16.6% last year, with post-war and contemporary art (think Francis Bacon and Lucian Freud) up 29%.
What’s the risk? High – values depend on trends and the economy. Buy what you love you’ll always have something beautiful.