Investment Options: Why Wine?

Find out what investment options are out there so as not to miss out on wealth creation by holding excessive cash. That was the message from the Financial Conduct Authority (FCA) which launched a new campaign this week to both incentivise and educate Britons to invest their cash wisely.

The recent emergence of user-friendly apps and free time born of the global pandemic has drawn record numbers to the market in the hope of turning their down time into financial return. However, this surge of investment opportunism has given rise to poor decision-making; with many investors tantalised by the promise of big wins from high-risk strategies such as cryptocurrency and volatile stocks. The FCA’s double-pronged campaign aims to encourage more prudent investment, while at the same time educating about the risks. The watchdog is roughly targeting a fifth of the estimated 8.6m Britons who have over £10,000 in cash.

‘Over time, [they] are at risk of having their money eroded by inflation.’ – The FCA

This recent investment activity highlights that, with interest rates as low as 0.1% at the time of writing, those looking to either start investing or diversify their portfolios would do well to take advantage of the current trend and to consider investing in wine, a proven way of delivering growth.

The benefits of wine as an investment option:

• In the last 30 years wine investment has delivered an average of 10% compounded growth

• It is a tax-free investment with no Capital Gains Tax

• It has a low correlation to other assets

• Uniquely, wine both improves and becomes rarer with age, unlike other assets in the same class

Based on previous performance, solid returns could be realised after five years, though customers who have held their wine investments for up to ten years or more have seen even greater returns and any potential investor should consider a long-term strategy.

Ultimately, wine is considered an excellent opportunity to grow your pot of cash in a time where interest rates cannot. With good advice and the right selection, wine could be the best investment option you add to your portfolio this year.

Find out more by downloading our free guide to wine investment.