Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
What Are the Best Investments to Make Right Now? Our Honest Take
Ruby Layram
24th Aug 2026
Ask ten different investors “what’s the best investment right now?” and you’ll get ten different answers, because the honest truth is there isn’t one. The best investment for a 25-year-old with 40 years until retirement looks nothing like the best investment for someone who wants a reliable income next year, or someone who just wants their money to sit somewhere safe for 18 months.
So instead of pretending there’s a single winner, we’re going to give you our take on the best option in four different categories: growth, income, alternatives, and stability. Pick the section (or sections) that match what you’re actually trying to achieve.
Read next: How to build an investment strategy in 5 steps
For Growth: If You’re in Your 20s or 30s (or can handle risk!)
If you’re young and investing for a goal that’s decades away- retirement, financial independence, or just “building wealth” in the abstract- you’re sitting on the biggest advantage any investor can have: time.
Time to ride out crashes, time to let compounding work, and time to recover from bets that don’t pay off. Wasting that advantage on “safe” low-growth assets is, in our opinion, the single most common mistake young investors make.
The core of a growth portfolio, in our view, should be a low-cost global equity index fund or ETF– something that gives you exposure to thousands of companies across dozens of countries in one purchase, rather than trying to pick individual winners.
This is unglamorous, and it won’t make for exciting conversation, but it’s done more to build long-term wealth for ordinary investors than almost anything else available.
On top of that core, we think it’s reasonable for younger investors to hold a smaller “satellite” allocation (say 10-20% of the growth portion of a portfolio) in higher-conviction, higher-volatility bets: individual tech and AI-linked shares, or emerging market funds.
The AI infrastructure boom, in particular, has been the standout growth theme of the last two years, and while we wouldn’t bet the house on any single company in that space, having some exposure via a semiconductor or technology fund strikes us as a reasonable way to participate in the trend without picking a single winner.
Individual growth stock-picking is fun, but for most people under 35, the highest-expected-value use of your time is maximising your ISA and pension contributions into diversified funds- not agonising over which chipmaker will win the AI race.
For Income: UK Property Trusts Look Genuinely Attractive Right Now
If your goal is income rather than growth- you want your money to pay you something regularly, whether that’s to supplement a salary or fund retirement- our view is that UK Real Estate Investment Trusts (REITs) are one of the more interesting opportunities in the market at the moment, and don’t get talked about enough outside specialist finance media.
REITs are legally required to pay out at least 90% of their qualifying rental income as dividends, which is precisely why they tend to offer higher yields than the average share.
Right now, several well-established names are yielding well above the market average: Land Securities has raised its dividend for a decade running (its yield currently sits around 6.7%, with a conservative payout ratio), and logistics-focused LondonMetric has increased its payout for ten consecutive years too. At the higher-risk, higher-yield end, Regional REIT has been yielding around 10%- a figure that should be treated as a signal of real risk (heavy office-sector exposure) rather than a free lunch.
A diversified basket of two or three REITs with different property types (logistics, healthcare, supermarkets, rather than all-office) is a more sensible income play right now than chasing the single highest headline yield.
Pairing that with a broad equity income fund, which spreads dividend risk across dozens of companies rather than a handful of trusts, is, in our view, the more balanced way to build an income stream without over-concentrating in one sector.
It’s important to understand that REIT dividends are not guaranteed, and property values can fall as well as rise, particularly if interest rates move against the sector. Income investing rewards patience and diversification far more than it rewards chasing the biggest yield on the page.
For Alternatives: Gold Earns Its Place, Crypto Is a Small Bet at Most
“Alternative investments” covers a lot of ground- gold, cryptocurrency, peer-to-peer lending, art, wine, private equity- and our honest opinion is that most of it doesn’t deserve a place in an ordinary investor’s portfolio.
But two categories, used carefully, do.
Gold is the one we’re most comfortable with. It’s had a genuinely strong run, driven by a rare combination of geopolitical uncertainty and record central bank buying, and while past performance is no guarantee of future results, gold’s long history as a portfolio diversifier- an asset that often behaves differently to shares when markets get nervous- still holds up.
The most practical way to get exposure for most UK investors is a London-listed, ISA-eligible gold ETC (exchange-traded commodity), such as the iShares Physical Gold or Invesco Physical Gold products, rather than buying physical bars or coins. A small allocation- we’d suggest somewhere in the 5-10% range of a total portfolio- is a reasonable insurance policy, not a growth engine.
Peer-to-peer (P2P) lending is a more mixed bag in our opinion. Lower-risk platforms that spread your money across large numbers of secured loans can offer better returns than a savings account, but it’s crucial to understand that P2P lending is not covered by the Financial Services Compensation Scheme (FSCS) in the way a bank deposit is- if the loans go bad, you can lose money, full stop. We’d only suggest P2P as a small, deliberate bet with money you can afford to lose, and only after reading exactly how a platform spreads its loans.
On crypto, it’s undeniably gone mainstream in the UK, with clearer FCA regulation than it’s ever had. But our honest opinion hasn’t changed much- it remains a highly speculative asset with no income, no earnings, and a price driven largely by sentiment. If you want exposure, treat it the way you’d treat a trip to a casino you can afford: a small amount you’re genuinely prepared to lose entirely, not a core part of your financial plan.
Read: How to invest in crypto in the UK
For Stability: Don’t Overlook Premium Bonds and Short-Dated Gilts
If your goal isn’t growth or income but simply keeping money safe- an emergency fund, house deposit, or money you’ll need within the next couple of years- our opinion is that too many people default straight to a savings account without considering two other options that are just as safe and, in the right circumstances, more rewarding.
NS&I Premium Bonds are our pick for money you want completely protected (they’re backed directly by HM Treasury) but don’t need immediate access to grow steadily. Instead of guaranteed interest, your money is entered into a monthly prize draw with tax-free prizes from £25 up to £1 million; the current annual prize fund rate is around 3.3%, which is roughly what an “average” saver can expect over time, though, by design, some people will do better and others worse than that average.
We like Premium Bonds for their simplicity and total capital security, though we wouldn’t rely on them if you need predictable, guaranteed returns.
Short-dated UK government gilts are the other option we think is underused by everyday savers. Buy one, hold it to maturity, and you’re contractually entitled to your capital back plus a fixed rate of interest along the way- currently in the region of 4.0-4.5% depending on the term. The important rule: only buy a gilt you intend to hold until it matures. Sell early and its value can have moved against you if interest rates have changed.
Money Market Funds are the third leg of the stability stool. They invest in short-term government and top-quality corporate debt, currently yielding around 4%, and offer more flexibility than a fixed-term savings bond since most can be accessed within a day or two.
For genuinely short-term money, a mix of a top-rate easy-access savings account and a money market fund covers most people’s needs without the complexity of gilts.
Our Bottom Line
The “best” investment right now depends entirely on what the money is for, and the biggest mistake we see is people applying a growth mindset to money they need next year, or a play-it-safe mindset to money they won’t touch for thirty years.
Match the investment to the goal first — then worry about picking the best option within that category.
- Growth (decades away): core global index fund + a modest satellite in tech/AI or emerging markets
- Income (want it paid out): a diversified basket of UK REITs plus a broad equity income fund
- Alternatives (diversify, don’t gamble the lot): a small gold allocation, with crypto and P2P kept deliberately tiny
- Stability (need it safe, soon): Premium Bonds, short-dated gilts, or a money market fund over a plain savings account
Risk Disclaimer
This article is an opinion piece reflecting our editorial view of current market conditions as of 24 August 2026. It is for general information and educational purposes only and does not constitute regulated financial advice, and should not be treated as a personal recommendation. Investing involves risk, including the risk of losing money, the value of investments can fall as well as rise, dividends and prize rates are never guaranteed, and past performance is not a reliable indicator of future results. Peer-to-peer lending and cryptocurrency are not covered by the Financial Services Compensation Scheme. Please do your own research and consider speaking to a regulated financial adviser before making investment decisions.
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