How to invest 1 million pounds | Complete Guide 2023

an image of one million pounds with a piggy bank for blog post how to invest one million pounds

One of the most asked questions in finance is “How to invest 1 million pounds”. This question holds water because there was once a time when simply placing a million pounds into a high-interest Isa would generate enough interest for a modest person to live on without touching the initial capital.

In this article we will look at all the ways you could invest 1 million pounds and what the estimated indicative returns would be.


What are my investment options?


When considering investing any amount of money there are a lot of different investment options that should be considered. The first step to any investment is to understand the vast array of investment vehicles that are available and then choose one which best matches your individual criteria.


There are several factors to consider when selecting your investment vehicle:


Risk Appetite


In our expert opinion, the first factor to always consider is your appetite for risk, you need to work out how much emphasis you want to place on the return, invariably the potential for higher returns will entail more risk.  Risk in investments is a relative term, although we talk in terms of risk, most investments will not be issued if they carry too much risk. 


If you are unsure of how much risk you can afford to assign to any one investment then always consult with a financial specialist.

Length of Investment


Another factor you should take into account is the investment duration. Generally, the longer you hold an investment, the higher the potential for returns. However, it’s essential to be cautious as higher returns may not be beneficial if your funds are tied up, causing you to miss out on future opportunities due to a lack of available capital. Consequently, it is crucial to maintain some liquidity by keeping investments with quick access to funds.


One strategy to achieve this is by allocating smaller amounts of money to longer-term investments. This approach allows you to retain partial liquidity, enabling you to take advantage of shorter-term opportunities as they arise

Capital Accessibility


The final metric we recommend you consider is if you were to invest money, how often and how quickly would you need to access the funds? Most investments will allow you to access your funds either particularly or completely, before the end of the investment term. But invariably this will incur a penalty or charge, so before entering into an agreement really consider if the growth of the capital outweighs the cost of any potential penalty.


In our opinion, if you carefully consider these 3 variables then you will match yourself with products far more suited to your individual requirement.


What’s to do next?


Now that you have an idea of your investor profile, you now need to establish what product you wish to invest in. The most popular options are:


Return Potential 9/10

Risk Potential 6/10


Stocks are a long-term favourite in the investment community. By purchasing stocks/shares you are essentially purchasing a small % of a company, the better the company does the more your shares are worth. Stock investment has always been a staple product in the investment arena. But it is noteworthy to mention that the stock market is volatile and there are many factors which contribute to a company’s valuation. Before investing in stocks always consult an industry specialist such as a new capital link.



Return Potential 7/10

Risk Potential 4/10


Bonds have long been a favourite among investors seeking stability in the financial markets. When you invest in bonds, you are essentially lending money to an entity, whether it be a government or a corporation, in exchange for regular interest payments and the promise of getting your initial investment back at the bond’s maturity date. Bonds are considered a relatively safer investment compared to stocks due to their fixed-income nature.


Investing in bonds has always been a fundamental component of a well-diversified investment portfolio. However, it is crucial to recognize that the bond market also carries its own set of risks and factors that influence bond valuations. Interest rates, credit ratings, and overall market conditions can impact the value and performance of bonds.




Return Potential 9/10

Risk Potential 7/10


IPOs (Initial Public Offerings) have always been an alluring prospect in the investment landscape. When a company goes public through an IPO, it offers shares of its stock to the public for the first time. By participating in an IPO, investors have the opportunity to become part-owners of the company from its early stages.


Investing in IPOs can hold significant potential for gains, as the stock’s value may rise sharply in the initial stages of trading. It allows investors to be part of a company’s growth story from the ground up. However, it is essential to acknowledge that IPOs come with their own set of risks, as the future performance of a newly public company can be unpredictable.


Return Potential 4/10

Risk Potential 1/10


An ISA (Individual Savings Account) has long been a favoured tool for individuals seeking tax-efficient savings and investments. ISAs provide a way to save or invest money without paying income tax or capital gains tax on the returns earned within the account.


By contributing to an ISA, you can grow your savings or investments over time, taking advantage of potential compound interest or capital appreciation. There are various types of ISAs available, such as cash ISAs and stocks and shares ISAs, each offering different ways to save and invest based on your financial goals and risk tolerance.


Property Bonds

Return Potential 10/10

Risk Potential 3/10


In our opinion property bonds are an ideal product offering for both new and experienced investors. A property bond is a tool used mostly by large property developers (Northumberland Living, Ashbrookes, etc). These companies offer a “loan note” or “Bond” to investors in order to raise capital to start or finish a development project.  The investor will hold the money with the property developer until the project is complete, upon completion the initial capital is repaid along with a pre-agreed % increase.


With property prices increasing in the UK, investors are looking more and more to bricks and mortar for profitable opportunities.

a graph showing why property bonds are a good way to invest 1 million pounds

How do I choose the right product to invest 1 million pounds?


In this article so far we have covered how to calculate your investment profile and we have covered a few of the products that you can potentially invest into.


Now it’s time to look into the best strategy and how you can effectively negate risk while still obtaining sustainable profits.




A term you will often hear in finance is “Diversification”. Diversification means in its raw forms to own more than one type of investment. But there are lots of ways that you can diversify your portfolio, you can opt for the same asset class but spread it across different global locations, you could purchase shares in lots of varying companies, or go the traditional route of owning multiple asset classes. The old adage is “Don’t put all your eggs in one basket” This is especially true in finance. By effectively diversifying your portfolio, you are spreading and minimising risk. 


Passive and Active Strategies

A passive investment strategy aims to replicate the performance of a specific market index or a particular segment of the market. The primary goal is to match the returns of the chosen benchmark rather than attempting to outperform it. 

Passive investors believe in the efficient market hypothesis, which suggests that all relevant information is already reflected in asset prices, making it difficult to consistently beat the market over the long term.


Learn How to Invest with New Capital Link


New Capital Link is a boutique London-based introducer that offers unique UK & global investment opportunities worldwide.

  • Above Industry Average Returns
  • Dedicated Client Team
  • An Award-Winning Alternative Investment Firm


If you are looking to invest some of your capital and are tired of costly broker fees, low returns or poor product placement, then the experienced team at New Capital Link can help.

by Rachel Buscall

by Rachel Buscall

Co-Founder & Managing Director at New Capital Link. Having started her career in the financial sector, Rachel demonstrated a natural flair for entrepreneurship.

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New Capital Link

Alternative investment specialists offering structured opportunities across the UK & Overseas.

New Capital Link is a boutique London-based introducer that offers unique UK & global investment opportunities worldwide.

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