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So far we have only discussed ordinary shares of UK companies. For the most part, these are what UK investors put their money into. However, it might be worth considering preference shares (known as prefs), which offer a route to investment with less risk than ordinary shares but with higher returns than on bonds.
Another alternative is investment in overseas shares. There is logic in not having all your eggs in one economic basket (the UK economy) and spreading your portfolio across a number of countries. Many advanced and emerging economies offer the prospect of rapid development and high share returns. On the other hand, ...