In the current digital world, saving and investing in shares is a lucrative business venture. There are numerous ways to indulge in this business. Whether investing in individual savings accounts (ISA), peer 2 peer (P2P) lending, or stocks, the fact is, you may end up gaining massive profits.
However, what exactly do these terms mean and what do they entail? As the name suggests, an ISA is simply an individual account where you can save money and enjoy profits from interests incurred. P2P lending is the practice of lending money to businesses or individuals via online platforms whereby lenders are matched with borrowers.
Stocks or shares are a type of security that provides an individual right to ownership of a company’s portion of assets or earnings. So, between the three, which is the best form of investment and why? To help you decide on what’s ideal for you, we have compared the rewards and risks involved in each form of investment.
Although investing can sometimes feel like navigating a minefield, investing in ISAs can act as an efficient method to maximise your profits. ISA’s are tax-free, which makes it a great way to grow and nurture for your money. When the government offers you the opportunity to not pay tax, it is always wise to take up their offer, use it to your advantage and invest. Taxing is like a cost that has been incurred every time you invest – it simply prohibits your income from growing. Luckily, with ISAs you don’t have to worry about the tax man. The majority tend to think of it as a shelter built around your investment, which works in helping your investment grow.
Why not P2P lending or stocks?
With P2P, you are guaranteed cheaper services since its operation is conducted via online platforms. As a result, as a lender, you might end up gaining huge returns compared to other forms of savings and investments in traditional banks. However, although P2P might guarantee higher returns, there are certain risks involved. It is easy for borrowers to default on the loans taken. Whats more, as you’re cutting out the middleman, i.e. the bank, there are absolutely no guarantees that you’ll see your money again as most P2P lending platforms, such as “GoFundMe” aren’t regulated by the financial conduct authority. So whilst you may stand to gain a lot, you stand to lose a hell of a lot more!
On the other hand, shares can also be profitable when invested in a well-performing company. However, it can also be risky if the company’s performance starts to go down.
Clearly, from the above investments, there is no doubt investing in any of these methods can turn out to be a lucrative business venture. However, when investing, you have to be smart and utilise a method that involves fewer risks, allows you to save as much as you can, make profits, and reinvest without having to worry about taxes. Although P2P and shares might also be useful, investing in ISA is much, much safer.
At Absolute ISA, we believe that the journey from the initial investment through to the final payout should be as smooth and simple as possible. We specialise in bringing the most promising opportunities to our investors, importantly the regular, reliable returns from corporate bonds. Our religious selection process pinpoints only the most reliable opportunities so you can have greater profits and more peace of mind. Join us today and let us help you build your profits.