Research shows that the lower income households across United Kingdom have had a swim into their savings in order to stay afloat as the pandemic drastically impacted the lives and the savings, while the higher income households have had the opposite opportunity and have grown their savings. Everyone is set to find innovative and new income streams to get more bang for their buck! The ways including navigation of the often complex world of savings and investments and they’re turning to the internet for the ideas and advices on where to begin.
There are multiple questions like which companies are in the FTSE100? Which had almost 40.5k monthly searches on the internet. The questions like, what is an ISA? With 12,100 monthly searches and many more. The FTSE100 is made up of the 100 largest qualifying companies as said by market cap which are the available shares multiplied by the current share price were listed on the London Stock Exchange. The index acted as a major indicator of the UK stock market at large. Its 3 largest constituents are Unilever, AstraZeneca, and HSBC. The choice of share depends on various factors like the risks you’re willing to take, the overall market climate, and much more. But before buying any shares, doing some sort of homework and proper research on the company and the industry at large is a must. There are always opportunities in the market to fit into every budget and experience level, and more like picking the winning lottery numbers, there is no captivating formula for what to invest in, or when.
The next question with 12,100 monthly searches was what ISA means. ISA is an abbreviation for ‘Individual Savings Account’, which is a savings account available to the Citizens of the UK over 16 years old. This account comes without taxing the interest earned on it. It serves a low risk investment, it has its own drawbacks that allows you to hold only one active ISA per year and you will be capped on the amount you place is it, currently running at £20,000. There are two kinds of ISAs: a ‘cash ISA’, whereby you pay into it as you would in a traditional savings account to earn interest, and a ‘shares ISA’, where your money is invested in stocks and bonds and neither the interest nor the profit will be taxed.
What are bonds? The question with 8,100 monthly users. A bond signifies a loan, typically given to a body like an administration or large company, by an investor. Governments may opt to issue bonds to raise money, and then agree to buy these bonds back at a later on an agreed-upon ‘maturity’ date. Bonds are measured as a low-risk investment and can be a good way to diversify your portfolio with minimal exposure. There are many questions like Hedge funds, pension drawdowns and dividends etc.
There was also a raised search for the crypto currency with 4,400 monthly users. So, the crypto currencies are the digital-only currencies which are held in the block chain. They are not tied to any central bank and therefore not regulated and are volatile which are considered to be a high risk investment unlike the regular cashable currencies. There are many crypto currencies like Bitcoin, XRP, Ethereum which are becoming a part of the very world created to challenge.