The UK has long been a destination for investment from all across the world. Multinational firms site their operations here and pour cash into them, while there’s a whole host of opportunities for institutions and retail investors to increase their net worth. Even with significant events and upheavals such as Brexit on the horizon, Britain remains a top global destination for investors, traders and more. Here’s an overview of the state of the investment scene in Britain today.
Institutions and funds
Britain is, of course, home to the City of London, while other emerging financial centres such as Edinburgh play host to a variety of investment institutions. The statistics speak for themselves: the City of London is believed to add almost 3% to the UK’s overall output, while almost half a million people work in it. However, it’s only by looking at the sheer diversity of the investment fund types in London and beyond that it’s possible to see the degree to which Britain is such an investment hotspot. From Lansdowne Partners to BlackRock, there are lots of hedge funds located here – and with wider private equity providers such asPermira and Bain also represented, the diversity is clear to see.
Retail investment
For retail investors, meanwhile, Britain’s affluence spells opportunity. The FTSE is one of the world’s most buoyant stock markets, and it has risen around 2,000 points or more overall in the last ten years – and with overall stock market performance showing great growth in the long term, there is a distinctive appeal there for retail investors. Retail investors can also find a whole host of other investment vehicles in Britain. Contracts for difference, or CFDs, have emerged in popularity in recent years. These instruments are derivatives, so they don’t transfer asset ownership rights – but they do give flexibility, and a chance for higher profits. Many British CFD brokers are available, and provide products tracking every sort of asset from major British companies to forex pairs involving the pound.
Investing in infrastructure
However, the investment industry in Britain isn’t just limited to speculative growth. There’s also another type of investment on the go here, and that’s the sort of investment in infrastructure and other projects thatis required to keep roads moving, buildings getting constructed, and more. There is a clear financial element to this sort of enterprise, of course: private firms such as Balfour Beatty, which has a high market value and revenues of over £6bn, are shining examples of the British private sector’s ability to invest in the infrastructurethe country needs.
Britain is a top destination for all kinds of investors. Whether it’s investing funds designed to provide clients with handsome returns over a long period of time or the sort of retail opportunity that might be better suited to CFDs, there’s something for everyone. With much of the British investment scene also focused on ensuring that the UK has the infrastructure it needs to continue to be an amazing place to do business, there’s no sign of the UK’s dominance on the international investment scene petering out any time soon.
