September 9th 2025
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The Best Way To Invest £50K For Scaling Investors. Is It Property?
If you’re an ambitious investor with £50K in your bank account, you may be wondering how to maximise your funds and achieve (or even exceed) your financial goals.
While financial investment can come with its share of risks, leaving your money in a traditional savings account for long-term safekeeping will erode its value.
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Why? Even if inflation sits at a steady rate of 2% per year, it would take a mere 36 years for your £50K nest egg to halve in spending power.
Investing sizable sums of money can be daunting, as a trusted property expert and experienced investor, I’ve helped myself and my clients earn substantial returns from starting funds of £50K.
Here I’ll explain how to invest £50K in the UK by reviewing five approaches that can lead to consistent financial growth or a reliable source of passive income.
Did you know? 54% of UK adults state they’ve invested in stocks and shares in 2025. That’s a 51% rise from 2024.
Despite current economic uncertainty, stocks and shares remain one of the nation’s most popular investment options.
Stocks and shares has made its way to my ‘best ways to invest £50K’ list as you can earn a consistent rate of growth by making balanced choices that align with your goals.
The average annual return of the FTSE All-Share Index over the past four decades is around 7.48%. That’s a healthy rate of appreciation which you stand to enjoy if you place your eggs into the right investment baskets.
Here are some practical tips to help you get things off the best possible start:
Look for a respected broker that charges zero commission on stock, ETF, and fund trades such as Freetrade or Trading 212. Doing so will keep your consultancy or service costs down, maximising your returns in the process.
If you’re juggling several plates and would prefer a less hands-on approach to investing, index funds typically offer wider market exposure and often generate healthy average market returns. For the best outcomes, look for funds that track the FTSE 100 or FTSE All-Share Index.
Risk level: Investing in stocks and shares is usually considered quite high-risk because of constant market fluctuations. With informed advice and a diverse portfolio, you can potentially reduce your financial risk and boost your profits over time.
Kalpana Fitzpatrick, editor and MoneyWeek advises potential investors to diversify their stocks and shares portfolio:
“We all know the importance of not putting your eggs in one basket.
I would first use up my £20,000 ISA allowance and place it into several index funds like the Vanguard LifeStrategy or the iShares S&P 500 ETF, with no expectation to touch it for the next 10 years or so.
I’d also place £10,000 in some active investments, like the Scottish Mortgage Investment Trust, FundSmith Equity and the Polar Capital Global Technology.”
– Kalpana Fitzpatrick
Investment trusts are a form of pooled fund that is also referred to as a ‘basket’ or mix of underlying assets, including bonds or equity.
Investment trusts are officially listed on the London Stock Exchange (LSE), with share prices fluctuating in response to investor demand and supply.
When you invest in a trust, you’re basically buying a share in a specific company. That company then uses the money from its shareholders to create a portfolio of investments under the management of a professional fund manager. The value of your investment is tied to the continued performance of your portfolio.
Here are some tips to help you choose an investment trust that will less risk and better potential returns:
Many investment trusts trade at a discount. Search for investment trusts that are being offered at a price below their NAV to secure your underlying assets for less than they’re worth (a little like buying a house for below market value). Choose your discounted investment trust wisely and you could maximise your overall returns.
Investment trusts are handled by a fund manager and governed by a board of directors. Researching a trust’s fund manager and board’s track record over the past five to 10-year period will better inform your decision and increase your chances of placing your money into secure hands.
Risk level: Investment trusts are generally considered to carry medium to high risk level because long term success and returns are often influenced by the manager or board’s investment strategy.
Exchange-traded funds (ETFs) are another branch of pooled investment are another branch of pooled or collective investment.
ETF figures can vary greatly, but over the past 30 years, the S&P 500 index has delivered an average annual return of 11.0%. ETFs can be an effective way of investing £50K as they’re diverse by nature.
A single ETF fund can hold multiple (up to thousands) of varied assets. This level of diversification helps to reduce your overall financial risk compared to investing in a single stock.
Here are the best types of ETFs currently available to investors (like you):
- Index ETFs: The most well-trodden type of ETF. These types of funds track a market index, like the S&P 500, the FTSE 100, or a particular bond index.
- Sector ETFs: These ETFs focus on a specific or sector industry, including technology, healthcare, or energy.
- Commodity ETFs: These types of ETF allow you to invest in physical commodities like oil or gold without having to own them in a physical sense.
- International ETFs: This style of ETF offers exposure to stock markets in particular countries or regions outside your own.
According to iShares, if you’re looking to take the leap and invest in a suitable ETF, you should strike sooner rather than later:
“When it comes to investing, sooner is always better than later. After all, the longer your money’s invested in the markets, the better chance it has to grow. And while it may have made sense in the past to save up and invest with larger amounts, today’s lower trading fees mean you shouldn’t have to wait.
Make sure that you’ve carried out your own research and feel confident that it’s the right time to invest, and that you don’t hold any significant short-term debts, as they could cost you more in interest than the amount of return you see on your investment.”
– iShares
FYI: We recommend talking to a broker or making well-researched ETF investments via a trusted ETF investing platform.
Risk level: ETFs come with a varied level of risk depending on the type of ‘basket’ you invest in and how much money you put into a particular pooled investment. I recommend speaking to your potential fund manager or an impartial ETF expert to gauge your risk before committing.
Fixed income investments are a savvy way to invest £50K and earn a steady rate of long-term growth.
When buying into fixed-income securities, you essentially become a lender. You essentially ‘lend’ a lump sum (in this case, up to £50K) to an entity like a government body, a particular corporation or through a trusted third-party marketplace.
In return for your investment, you received a fixed set of regular payments based on a pre-agreed interest rate.
Experts from Investopedia state that while fixed income securities are typically lower risk compared to other popular forms of investment, you should be aware that once you’ve locked in an interest rate, it’s not possible to increase it.
That said, I recommend shopping around for an agreement that suits your exact needs and understanding the terms in detail before signing on the dotted line. You should also diversify your fixed income portfolio to open up multiple revenue streams and reduce your overall risk.
Risk level: Fixed income securities are generally seen as low to medium risk investments. However, you should always take a wider look at the market and compare potential options to ensure you’re placing your funds into a secure stream of investment at a solid level of interest. Doing so will mitigate your risk and ensure you earn a steady rate of growth from your £50K investment.
Did you know? Research from Zoopla reveals that the average UK rental yield is 5.6%. Also, according to ONS data, average UK property prices increased to a solid 4.9% from January 2024 to January 2025 alone.
That said, building a diverse property portfolio is the most powerful way to invest in £50K in the UK right now.
Making property investments that align with your long-term financial goals and building a varied portfolio will give you access to the two essential elements required to maximise your initial £50K investment:
- Long-term capital appreciation
- A steady monthly income from your 50K investment
Sourcing properties in developing areas with rising rental demand will ensure you connect with affordable investments and earn a regular income as a buy-to-let landlord. Plus, when you do decide to sell your asset, you’ll likely make a solid profit.
If you want to get ahead as a UK property investor and maximise your £50K , here are three of my insider tips:
- Invest in a thriving buy-to-let market: Presently, properties in North-East England offer among the top rental yields in the UK. Areas such as Liverpool, Bristol, and Plymouth are also potentially rewarding and boast a healthy rental demand. Do your research, set your budget, and invest in an area with a rising buy-to-let market. That way, you’ll enjoy a regular rental income and boost your chance of securing assets that consistently rise in value.
- Go below market and off-market: By connecting with off-market properties that you don’t see on crowded third-party platforms like Zoopla, you’ll maximise your chances of securing affordable investments with far less competition. Finding below market value properties means you can reduce your initial investment costs and boost your profits in the long run.
- Use bridge financing to grow your portfolio faster: With a careful approach to bridge financing, you can acquire more quality property investments faster by arranging short-term loans. Bridge financing is much like ‘recycling your funds’ several times in a year to connect with potentially rewarding opportunities. Bridge financing is a powerful tool for property investors, but it does come with its risks, as Property Sourcing Company’s very own Jessica Chambers explains: “Bridging finance allows you to cycle properties more frequently, splitting up your funds into smaller deposits across multiple properties. Whether you want to do this depends on your appetite for risk, as you will speed up your returns considerably, but you need to be able to get your Buy To Let mortgage in place to pull the money back and avoid expensive loan repayments.”
Risk level: The risk level of property investment can fluctuate based on market values and rental demand. While there may not be quite as much ‘liquidity’ in property compared to other investment types, with a structured approach and the right advice, it’s the best way to get the most from your £50K investment.
Related: Alternatives to Rightmove Plus for property investors
How to invest £50K: a comparative summary and insider tips
| Type of investment | Potential returns | Risk level |
|---|---|---|
| Stocks and shares | An average of 9.64% for stocks and shares ISAs. | Medium to high |
| Investment trusts | Average returns are around 3 to 3.9% a year. | Medium to high |
| ETFs | ETF figures can vary, but over the last 30 years, the S&P 500 index has delivered an average annual return of 11.0% | Varies based on your ‘basket’ or collection of investments. |
| Fixed income investments | High-yield bonds currently sit at an average of 8%. | Low to medium |
| UK property | Average buy-to-let rental yields in the UK are 5.6%. Not only can building a varied portfolio provide a reliable income stream, but as property prices appreciate in value year on year, you can enjoy significant returns by selling select investments at opportune times. | Fluctuates but has the potential for high return |
NOTE: The information included in this table serves as a guide. Your investment returns will vary based on market conditions. Always seek professional investment advice before making a big financial commitment.
This advice is based on our experience and knowledge as property investment experts and is here to help guide your decisions. However, we’re property professionals and not legal advisors or general investment specialists.
We recommend seeking assistance from a registered broker or field expert before making any commitments or decisions.
We have an ever-expanding portfolio of quality assured properties across the UK, many of which are around 15 to 20% below market value.
You won’t find these properties on your usual third-party property listing marketplaces and we boast a choice of properties to suit every goal or budget. Contact us today—we look forward to helping you invest your £50K the smart way.
There are several effective ways to invest £50K in the UK, including stocks, investment trusts, ETFs, and fixed income securities. However, if you want to secure assets that consistently appreciate in value, provide a steady monthly income from your £50K investment, and offer a potentially sizable return on investment, property is your best option.
If you’d like to earn a reliable income from your £50K investment, you should choose a method that offers a regular pay out. You can earn a regular return from fixed income securities as you essentially become a lender. However, the most impactful way to enjoy a steady stream of income from your £50K investment is by becoming a buy-to-let landlord, especially because of the fact that average rental yields are currently 5.6%.
To save 50K at a consistent rate and achieve your financial goals, you should add your existing funds to a high-yield savings account or start a regular investment plan. Beginning your savings journey with a balanced blend of fixed income securities or CCEs will also improve your likelihood of saving up £50K more consistently.
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