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How to invest 30K or 40K in the UK?

£30K or £40K is a considerable amount of money. Regardless of the ways you choose to invest your money to achieve your financial goals, your decision should be driven by your investor profile.

Your investor profile is determined by things like your tolerance towards risk. For example, you can invest 30K short-term or 40K long-term in various investment vehicles such as stocks, bonds, and ETFs. However, you must choose the right investment vehicle if you aim to access your money when the need arises without facing a penalty.

Is 30k or 40k a lot of money to invest?Absolutely
Where can invest 30k?Stocks & ETFs, mutual funds, real estate, and alternative assets
How can I invest 40k?You can invest in a retirement plan, investment account, robo-advisor or individual stocks
Where is the safest place to invest 30k?High-yield savings accounts or money market accounts

In this article, we will look at ways you can invest, for example, 30K a year for 10 years or the best way to invest 40K as a one-off event, etc. In addition, we will look at types of investment, investing in the FTSE 100, investing in the S&P 500, and what sort of other investment options are open to you.

No investor wants to expose their funds to overly risky investments. It’s all about making as much money as possible while minimising risk at the same time. So let’s kick off by looking at the saving vs investing argument.

Why invest rather than save?

Saving and investing are two different things. Saving is about setting money aside a little at a time toward a specific goal – examples include saving for a deposit on a house, going on vacation, or setting up an emergency fund for unseen expenses such as having to call in a plumber to fix a leak.

Typically, the vehicles people depend on to hold their savings include current bank and savings accounts, building society savings accounts, and NS&I Premium Bonds.

On the other hand, investing is about taking money and putting it into products like property or stocks and shares in the hope that it will appreciate over time. So searching queries such as the best 30k investment ideas sound like a good idea.

While saving and investing money earns interest or returns, the interest on savings is typically relatively low – anywhere from 0% to 2.25%, depending on your chosen savings vehicle. However, according to, the return on investment in an ETF could be in the double digits.

People who decide the best way to invest 30K of their money rather than save it in low-interest savings accounts that erode the value of their money in real terms still want to invest with as little risk as possible. Especially given that UK inflation measured 10.1% in October. So, let’s explore the investment options available.

What are the best investments for 30K?

You have a wide choice of asset classes from which to choose. They include:

  • Bonds
  • Commodities
  • Cryptocurrencies
  • ETFs
  • ISAs
  • Real estate

Which would be the best investment for 40K or any other figure?

Investing in government or corporate bonds

Government Bonds are one of the asset classes usually considered relatively stable. But even these have been the subject of nervous speculation following recent political events. So whereas you could have viewed bonds as one of the ways to invest 30k relatively safely, you now wouldn’t be blamed for thinking twice.

Investing in commodities

Commodities are raw materials that fit into several categories, including foods, metals, precious metals, oil and gas. You can invest in commodities in several ways. For example, you might buy the product itself (more difficult in some cases than others) or invest in the companies that farm, mine or otherwise produce them. You can also invest in commodity futures or ETPs (Exchange Traded Products), which track commodity indices.

Because commodities are subject to the laws of supply and demand and geopolitical situations, these, too, can be somewhat volatile. Therefore, some investors might not consider them to be the best place to invest 30K. However, if you are thinking about investing in mutual funds, ETFs (exchange-traded funds) or ETPs (exchange-traded products), the risk element can be diluted through diversification.

Only a few people genuinely understand commodities. You may need access to trusted, professional financial advice if this ‘lack of knowledge relates to you. If not, when identifying the best investment for 30K, you should look elsewhere.

Cryptocurrencies are high-risk

An article recently published on Times Money Mentor highlighted that cryptocurrencies can be highly volatile and therefore considered high-risk. Their high-risk rating can be put down to a combination of four things:

  • Extreme volatility
  • The abundance of scams
  • High return exaggeration
  • Lack of any compensation schemes

Such is their volatility that you could lose a considerable amount, if not all, of your investment almost overnight.

Investing in real estate

For many investors, real estate has historically been among the best places to invest 40K. However, following the turmoil caused by the mini-budget recently announced by ex-Chancellor Kwasi Kwarteng, some potential investors are now somewhat nervous. Even though the new Chancellor, Jeremy Hunt, has reversed the majority of the mini-budget elements, the withdrawal of many mortgage products is making many investors think twice about property investing.

According to an article on Moneyweek, the £453m Columbia Threadneedle UK Property fund has stopped dealings due to the high number of redemption requests. Events such as this mean many people might now reconsider their investment strategies and think property might not be the best way to invest 30k short term.

Another option in real estate could be to invest in a Real Estate Investment Trust (REIT), which offers diversification. If this type of fund is of interest and you’re considering how to invest 75K, the website is recommending 5 REITs you can check out.

Despite the recent turmoil, if you are considering how to invest £200,000 long-term, real estate could still be an option, especially if you favour a countercyclical strategy.

Investing in ETFs

Exchange Traded Funds, or ETFs for short, have gained in popularity since the first ever ETF was launched in Canada in 1990. The first ETF in the US (S&P 500 SPDR (SPY) was launched in 1993, coinciding with the introduction of the SPDR. Two years later, in 1995, the second US ETF (MidCap SPDR (MDY B) was launched, and the rest, as they say, is history. As of the end of 2021, there were 8,552 ETFs registered worldwide.

ETFs, permit you to buy a broad range of asset classes and create a diverse investment portfolio. The most popular ones track major indices like the FTSE 100 or S&P 500 and can be traded on the stock market throughout the day. They are worth considering if you are looking for a 40K investment idea. They have become part of many investors’ investment strategies.

Investing in stocks and shares ISAs

All ISAs, including the stocks and shares ISA, are known as “tax-wrappers,” which is why they are one of the most popular investment vehicles with UK investors. This is because you do not pay tax on any gains or withdrawals. In fact, you do not even have to declare ISAs on your tax returns.

But if you are wondering how to invest £100,000, you need to know that your annual ISA allowance is limited to £20,000 per annum. You could, however, invest the balance of £80,000 in a General Investment Account (GIA) as there is no upper annual limit in this type of fund. So if you are pondering how to invest money in larger sums like this, GIAs are an excellent option.

You can use them to invest in a wide selection of asset classes, including things like bonds, ETFs, investment trusts and stocks and shares, and every year, transfer £20,000 into an ETF or stocks and shares ISA to make the best use of the tax-wrapper advantage.

If you have a large sum and you are looking for an answer on how to invest money to take the best advantage of your tax allowances, a GIA/ISA combination could be the perfect solution.

Evaluating risk and potential Returns

When you are considering starting investing, and you want to invest 30K or 40K, or it’s just the answer to how to invest £1,000 that concerns you, you should first consider your risk tolerance. Avoid high-risk investments unless you have the necessary expertise; even then, you will still need to take care.

It is important to evaluate the relationship between potential returns and risk level. If you are an investment newbie, it’s best to seek professional advice from an FCA-approved and registered financial adviser.


Should I save or invest £30k or 40k?

Deciding whether to save or invest your hard earned money depends on your willingness to take the risks involved in an investment. For example, if you’re putting your funds into stocks, you could lose everything if the market crashes. On the other hand, if you’re putting them into bonds (even for kids), you’ll get a steady return without taking considerable risks. Remember that not every investment is right for everyone.

 Should I get a financial advisor for investing £30k or 40k?

If you’re brand new to investments, talking to a financial planner might be the best way to proceed. You might get some advice from a financial planner which would help you reap greater gains. Financial advisors can also help you manage your investments and plan for long-term goals.

Where to invest £40k?

Depending upon your financial situation, risk tolerance, and your preferences, there are some good investment opportunities available for people who want to put their hard-earned cash into investing. Examples of these investments include Stocks & shares ISAs, stocks, ETFs, mutual funds, bonds, real estate, and peer-to-peer lending.

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*Capital at risk. Tax treatment depends on your individual circumstances and may be subject to change in the future.