Spotting good investments online

David Humphrey
Authored by David Humphrey
Posted Tuesday, January 30, 2018 - 6:28am

People that have a lot of capital ready to invest can struggle with actually selecting the investment opportunities that work. There are so many of these online to sift through, so how do you pick out a good one to commit your cash to?

Do your research

If you want to invest in a company, don’t just take what they have to tell you at face value. Do your own research into the industry and the opportunities that the investment offers. The information they’re giving you might be outdated or inflated to make the opportunity look more attractive.

With this information in hand, you can steer clear of investments that aren’t as lucrative or negotiate a better equity stake with others. It does take a bit of time, but it can potentially stop you from investing in a poor opportunity.

Asking an expert can save you this time, but it will cost you money, it’s up to you to decide which route you would rather go down. There are experts out there that will do the research for you, but it can be best to do so first hand to ensure it’s accurate.

Use an alternative investments firm

In some cases, using an alternative investments firm can offer you additional protection. This could be a peer-to-peer lending or a broker. With a UK peer-to-peer lending platform your savings are combined with others, before being lent to a business, then the profits that they make give you a higher interest rate.

This is a good alternative to going it alone, as the investments are handled by people who have a good handle on what makes a good or bad investment. While you can teach yourself to feel out this kind of good vibe, this can take time and a lot of failed investments to get through.

There are reviews out there on alternative investment firms, on Trustpilot for example. These will tell you a range of factors about the company, their reliability and the all-round experience that others have had with them.

Never rush

If you’re in a situation where you’re thinking about investment and the other partner tries to rush you, don’t be afraid to take a step back. Rushing into an investment is never a good idea, you want to give yourself more than enough time to research and make a measured decision.

If this means that you have to go away and think about the decision more, perhaps doing some further research, then do so. At the end of the day, you want to protect your money as best you can so be sure to give yourself the wiggle room to do just that. Use the most up to date surveys, reviews and reports on the industry before you make that big decision.

Instead of allowing your cash to sit in an account, investing your money can provide you with a good return. Using investment opportunities, you can get your money to work for you, these tips will be sure to help you pick the best one for you.

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