How to Invest 1 Million Pounds? (5 Ways for the Highest Returns in 2021)

Ready to Invest £1 Million For The Best Returns?
Enter your details now to gain access to our top property investment tips guide, filled with essential information every investor needs to know.
Invest In Your Future Today

    To access this helpful resource, please fill in your details below to download now.

    Invest From £38,500
    View Embankment Exchange Today

    Looking to invest in the UK but don’t know where? Embankment Exchange is located in Manchester, North West England. It’s a high-end development consisting of two skyscrapers overlooking the waterfront, with excellent potential to earn strong rental income.

    • Less than £50,000 Required to Invest
    • Limited 2-Bedroom Apartments
    • Stunning Skyscraper Development in M3 Manchester
    • Located on the Waterfront with Minimum £17,997 Income
    • 5% Price Growth by 2026 in Manchester
    View the Development

    How to invest 1 million pounds How to invest 1 million pounds

    How to invest 1 million pounds? 

    It’s a question we’ve all asked ourselves at least once in our lives, but if you’re lucky enough to have the cash, you may feel overwhelmed at the options you have. 

    This is where we come in. 

    In this guide, you will learn exactly how to invest 1 million pounds, with five different methods for getting the highest returns in 2023. The information we present is intended as guidance to show you different ways to invest, and should not be considered financial advice. 

    Let’s get started.


    Explore Topics

    Explore Our Portfolio of Investment Properties

    Find lucrative investment opportunities with RWinvest. We have a range of buy to let properties in the best UK investment areas such as Liverpool, Manchester, Birmingham, and more.

    If you’re looking for the highest rental yields and strongest capital growth, our properties are not to be missed. Whatever your budget, we have fantastic deals available to help you kickstart a profitable property investment journey.

    Click the link below to find out about our latest opportunities offering rental yields of up to 8% and projected 11.7% five-year capital growth.

    View Properties
    Invest in Real Estate Invest in Real Estate

    1. Invest in Real Estate 

    Return Potential:  ★ ★ ★ ★ ★

    Risk:  ★ ★ ☆ ☆ ☆

    When it comes to knowing how to invest 1 million pounds, real estate investment should be at the top of your list. 

    Real estate investment, otherwise known as property investment, is the process of buying a property as an asset to generate income. 

    The investment class has surged in popularity in recent decades, thanks to the UK market seeing substantial growth over the last few years. 

    Particularly in 2020, property prices surpassed the £250,000 mark for the first time and have continued to grow in 2023, with a current average of £287,506 – 5.5% higher than a year prior. 

    UK House Prices UK House Prices


    This is key for any investor, as it shows the ability to earn a huge profit on the resale of their property, alongside getting monthly income through rent. 

    Widely considered the best investment for 1 million pounds in 2023, real estate investment is currently offering a compelling traditional alternative to cryptocurrency and stocks. 

    But how should you invest in real estate? 

    Well, there are currently two popular ways you can start investing in real estate today. 

    These are: 

    1. Buy to Let Property 
    2. Real Estate Investment Trusts 

    Want to Read About How to Invest 1 Million Pounds in PDF Format? Download a FREE Copy of Our Guide Now

    How to invest 1 million Guide

    Enter Your Details to Download Now

    What Is Buy to Let Property? What Is Buy to Let Property?

    What Is Buy to Let Property? 

    Undoubtedly the most popular form of real estate investing, buy to let property investment is the purchasing of a property to rent to a tenant for income. 

    You can buy different types of properties, with residential, student, and commercial property all falling under the BTL banner (although residential and student are likely your best bets for the bigger returns in 2023). 

    All market data currently points to buy to let being the best investment for 1 million pounds. 

    Alongside house prices rising, rent has also seen substantial growth.  

    According to the HomeLet Rental Index, the average rent in the UK as of April 2023 was £1,199, which is a record high and is 9.9% higher than last year. 

    This means that not only can you enjoy increasing rental income, but you can also sit back and enjoy excellent capital growth for the future. 

    Current predictions from Savills have estimated that prices in the UK are set to rise by 11.7% by 2027, making now an ideal time to invest. 

    These numbers show the low risk involved in property investment. You can continuously enjoy rental income and feel secure knowing your property is consistently growing in price. 

    With the right purchases, you can turn your initial investment from one million to two. 

    Overall, buy to let property investment is likely one of the best investments for 1 million pounds. 

    If you are looking for smart investments and trying to figure out how best to invest 1 million pounds in 2023, this is the method for you. 

    Exclusive Units Available

    Sky Gardens

    Completed Serviced Apartments

    Liverpool Prices from £129,950

    7% NET Rental Return

    Stunning Liverpool Location

    Contemporary Sheffield Investment Property

    Langford Tower

    Prices From £142,500

    UK Prices from £142,500

    Sheffield City Centre Location

    Incredible Onsite Facilities

    Awaiting Final Testing & Commissioning

    Vantage Point

    Unique and High-Quality Residential Accommodation

    Manchester Prices from £132,950

    7% Assured Rental Yields 

    North West Regeneration Hotspot

    Want to Learn More About Buy to Let Property?

    Download Our FREE 2022 Buy to Let Guide

    What Are Real Estate Investment Trusts What Are Real Estate Investment Trusts

    What Are Real Estate Investment Trusts? 

    A more niche form of real estate investment, but rapidly gaining in popularity, real estate investment trusts are companies that own rental properties on behalf of shareholders.  

    They work in the same way as mutual funds by pooling the money contributed to one fund, which is then used to buy properties. 

    There are plenty of rules to be classified as a REIT, but the one most interesting to investors is that they must give at least 90% of their rental income to their shareholders. 

    REITs are useful because they can help diversify a property portfolio with the ability to buy more properties than an individual is likely to afford. 

    However, you may have noticed the phrase “shareholders.” 

    This is because REITs act like any other company listed on the stock market. You can buy and sell shares in investment trusts, which brings along all the benefits and negatives attached to normal stock market investing. 

    Likewise, profits are split amongst tonnes of investors, which means you will earn less money than traditional real estate investing forms. 

    Download Our FREE Guide

    Request Free Guide on Real Estate Investment

    Make a Stock Market Investment Make a Stock Market Investment

    2. Make a Stock Market Investment 

    Return Potential: ★ ★ ★ ★ ★

    Risk: ★ ★ ★ ★ ★

    Stocks and shares are a wild beast. 

    The epitome of high risk/high reward, you could make substantial gains one day and lose it all the next. 

    If you bought £1 million worth of stocks and shares in Apple in the late 1970s, you would probably be living on a private island by now.  

    However, for every success story, there are 10,000 failures. 

    Stocks, or equities, allow investors to buy small parts of a company. 

    You can purchase multiple stocks, which will increase your total income through dividends.  

    You can buy and sell shares at any time on the stock exchange, with you ideally selling stocks for a considerable profit when the company increases in wealth and popularity. 

    It sounds straightforward, but there’s a nuance to stocks. 

    Knowing what stocks will rise and what will decrease, the ideal time to sell, and exactly what company to invest in has confused even the most seasoned investors. 

    This nuance stems from the fact that the stock market is uncontrollable and incredibly volatile. 

    Prices of stocks fluctuate almost always and can peak and trough from a variety of factors. 

    From the crashing of overseas economies to a new tax introduced by a government on home soil, everything in the stock world is connected, and things can drastically change. 

    Stocks aren’t safe. If you have any semblance of concern for your finances, you should avoid putting any sizeable percentage of your one million into the market. 

    Check out our guide to rental property vs stocks to learn more.

    Download Our FREE Stock Market vs Real Estate Investment Guide

    Request Free Guide
    Should You Invest in the Stock Market? Should You Invest in the Stock Market?

    Should You Invest in the Stock Market? 

    There are many success stories caused by the stock market. 

    If you are brave enough, money can be made. This high-risk strategy brings with it some profound strengths. 

    Chiefly, stocks are flexible. 

    You can quite easily buy them, with some apps available to buy stocks at any time of day. 

    You can also buy through brokers and financial planners, too, sometimes in the space of minutes. You can buy stocks in several companies and can decide how much you want to buy in each. 

    Likewise, they are easy to sell. 

    Stocks are often classed as “liquid,” which means you can quickly turn the shares into real money by selling them. 

    This is great if you need a quick buck, but as mentioned, doing this could mean you make sizeable losses. 

    Stocks are both short term and long-term investments. 

    If you have the guile and willpower, you can sit on stocks for several years. 

    Holding your nerve is key here and having the instincts to know when to hold on to a stock or sell it for a profit is critical. 

    Your stock may increase by 1000% one day, but two days later, tank into oblivion and never recover in price. 

    This is the world of stockbrokers – with each investor running the line between financial failure and vast wealth. 

    Stocks are an emotional rollercoaster.  

    While technically a good option for those wondering how to generate passive income, its demands for monitoring the stock market limit its passive nature. 

    If you have the strength of character to ride the wave, there is money to be made, but there are other more secure methods. 

    You can certainly put some money into stocks, but large amounts of wealth are risky. This is perhaps not the best investment for 1 million pounds. 

    Buy Bonds Buy Bonds

    3. Buy Bonds 

    Return Potential: ★ ★ ★ ☆ ☆

    Risk: ★ ★ ★ ☆ ☆

    There isn’t just real estate and the stock market to consider, though. Investing is a vast field, and another form you could consider are bonds. 

    Bonds are fixed-income investments used by companies, and even governments, to generate funds. 

    A company will essentially borrow money from you, and they will pay a fixed interest rate over time. 

    They can get a bit complicated, though, with bonds rated from Triple-A to C. 

    Triple-A means there is little risk as the company involved is very likely to pay you back with interest added. 

    Unsurprisingly then, C bonds are the lowest grade and are riskier but offer much higher yields. 

    Manchester Property Investment Manchester Property Investment

    Why Invest in Bonds? 

    There are several benefits to bonds. 

    Firstly, the investing returns are fixed, so you know exactly what you are getting out of it. 

    Compared to stocks, they are also far more reliable and less volatile. 

    When a company is liquidated, they have to pay investors. Bondholders are paid first over shareholders in such an event. 

    Likewise, the market for bonds is less volatile. While the value can change based on interest rates, they don’t wildly change day to day as stocks do. 

    On the other hand, a fixed investment, while beneficial, can also be damaging. 

    With stocks, you may run the risk of losses, but there is ample room for mammoth gains. 

    However, with bonds, you are getting exactly what you expect, with little growth. 

    Similarly, bonds can require large sums. Bonds can be bought at a low cost like £1,000 but can range far higher. 

    Of course, with a million in your back pocket, it is unlikely for that to be a problem, but again, bonds seem far riskier than property investment. 

    4. Save With Savings Accounts 

    Return Potential: ★ ★ ☆ ☆ ☆

    Risk: ★ ☆ ☆ ☆ ☆

    While some people have luxury purchases on their minds, many consider the possibility of placing their imagined millions into savings accounts and living off the interest. 

    One million pounds isn’t as much as it used to be, and it’s unlikely you could thrive off the interest based on the average interest rate. 

    However, savings accounts are still a smart decision as they can generate interest and keep your money safe.  

    While it won’t earn remotely near as much for you as property investment, it is still something worth considering. 

    On the surface, savings accounts are simple: You put money in the account, you generate interest. 

    However, there is a nuance to choosing accounts, as some come with extraordinary benefits. 

    One such benefit is tax advantages. 

    Taxes aren’t fun. But It’s something we all have to pay, and they have an annoying knack of biting chunks out of earnings. 

    Luckily though, there are ways to legally avoid paying tax, with the government promoting many methods. 

    There are several savings accounts that aren’t taxed and are worth considering if you want to put some of your millions away. 

    What Are Cash ISAs? What Are Cash ISAs?

    What Are Cash ISAs? 

    You’ve most likely heard of Cash ISAs, but you may not be aware of the benefits attached to them. 

    Cash ISAs are tax-advantaged savings account, which allows you to access the funds at any time. The money in the accounts is safe from tax, meaning you don’t have to pay income tax or capital gains. 

    Income tax and capital gains can heavily damage your profits, which makes ISAs so ideal. 

    You can deposit up to 20k a year into an ISA, so it may not be suitable if you wanted to put huge volumes of money in. 

    If you are trying to find out where best to invest a million pounds, savings accounts are unlikely to fulfil your desires, but they are undoubtedly worthwhile. 

    What Is a SIPP? What Is a SIPP?

    What is a SIPP? 

    Another excellent type of savings account is a SIPP. 

    It’s widely agreed that pension investment is considered a good thing to do. Well, the government thinks so too. 

    SIPP’s act as a personal pension fund and provide similar tax relief to the pensions you get at work. 

    You can contribute up to 100% of your earnings, but the tax relief will apply to contributions up to 40k per tax year. 

    A fantastic benefit of a SIPP is that the government will add 20% on top of a contribution, putting even more money into your future pocket. 

    Contributions placed into your pension are tax-deferred, which means you don’t pay tax on it now, but later down the line when you withdraw it. 

    5. Invest in Cryptocurrency

    Return Potential: ★ ★ ★ ★ ★

    Risk: ★ ★ ★ ★ ★

    The new kid on the block, cryptocurrency has shot up in popularity in 2021 thanks to the lucrative returns on offer. 

    But what exactly is it? 

    Well, cryptocurrency is a digital asset that functions similar to traditional forms of currency. 

    You can trade the currency or buy more on online platforms, with the purpose of cutting out banks and middlemen from taking cuts in transactions. 

    If that sounds confusing to you, then you aren’t alone. 

    Cryptocurrencies such as Bitcoin are notoriously confusing, with many investors struggling to get their heads around the concept. 

    Like stocks, though, cryptocurrency is incredibly volatile, with prices dropping heavily and frequently. 

    In an article from Time, one financial expert said about Bitcoin: “You have a high chance of losing it all, but a small chance of winning it big.” 

    While you can certainly put some money into this asset, stay clear of putting too much into an investment, especially if you’re new to cryptocurrency.  

    Otherwise, you run a substantial risk of losing out completely on your cash.  

    If you’re asking how best to invest 1 million pounds in 2023 or want to know the best investment for 1 million pounds without massive levels of risk, cryptocurrency is likely not the answer for you. 

    Cryptocurrency Vs Property Investment – What’s Better?

    Download FREE Guide

    Are You Ready For the Risks in Investing? Are You Ready For the Risks in Investing?

    Are You Ready for the Risk Involved With Investing? 

    It’s a word we all dread to hear when it comes to money, but risk comes part and parcel with investing. 

    Most investment opportunities pose a risk, and your attitude to risk is essential. Knowing how much trouble your financial situation can face is vital. 

    It may sound stupid, but can you afford this investment? 

    With such a large sum of money burning in your back pocket, the answer is most likely yes. However, could you survive losing your investment? 

    Would £100,000 or £50,000 disappearing overnight ruin your financial situation completely? 

    Like the stock market, some forms of investment can be wildly temperamental, making losing vast amounts of money possible on any given day. 

    Risk profiling is crucial, and if financial ruin is just a small step away, then perhaps don’t spend the lump sum.  

    Want to Learn More About Investing?

    Speak With an Agent
    Shaw Street Shaw Street
    View Property

    How to Minimise Investment Risk 

    While investing can be risky, especially when investing large sums, there are tried and trusted ways to minimise the risks involved. 

    If you use a third-party platform, such as a property investment company, you should ensure the company is reliable. 

    You can do this due diligence by checking out company reviews and their track record portfolio. 

    Another way to reduce risk, and perhaps the most important, is splitting up your investment into multiple assets. 

    Asset allocation is critical for ensuring you make as much money as possible. 

    In whatever way you choose to invest your funds, ensure it is spread around, so it is not concentrated in one area. 

    Buying a property worth one million or investing in one company with a lump sum is incredibly dangerous, and you will be minimizing your gains. 

    This is a sure way to turn your one million into one thousand. 

    A successful investor will ensure they make different types of investments to keep their bank account secure.  

    What Is the Best Way to Invest 1 Million Pounds in 2023? 

    Now that we’ve looked at 5 ways you can invest 1 million pounds in 2023, it’s time to address the main question. 

    What is the absolute best way you can invest 1 million pounds? 

    For our money, the best way to invest is likely real estate, due to the shining market data and reliability during times of uncertainty.  

    However, for the absolute best investments, it’s a smart idea to invest in all the strategies mentioned to gain a varied and sustainable portfolio. 

    For instance, you can place the bulk of your 1 million into real estate, and buy property in different cities to diversify your portfolio. 

    And for the remaining cash, you can place some in savings accounts, while purchasing stocks, bonds, and cryptocurrency to fill out the rest of your portfolio.

    Diversifying your portfolio in this way will minimise the risks involved and ensure the bulk of your cash is safe and growing for a successful investment. 

    Where to Invest 1 Million Pounds? Where to Invest 1 Million Pounds?

    Where to Invest 1 Million Pounds in Property? 

    So, let’s say you have decided to try buy to let investment. 

    The first question you may ask is “where to invest 1 million pounds?” 

    With real estate, there are a few characteristics you will need to think about to help evaluate the investment potential of an area. 

    Ideally, your focus will be rental yields. This is a percentage that shows the return on your investment generated via rental income. 

    If the rental yield was 5%, for instance, this would mean that you would be seeing a 5% return on your investment every year through rent without factoring in expenses. 

    But there are other factors you need to think about. The main three to keep an eye on are: 

    1. Affordability 
    2. Market growth  
    3. Rental yields 

    With this in mind, let’s look in detail at perhaps the best region to invest in for 2023. 

    Can’t Decide on Where to Invest £1Million?

    Speak With a Senior Agent Today!

    The North West Leads the Way

    28% Increase by 2025 28% Increase by 2025

    Currently in 2023, the latest market data suggests the North West is currently the best area for property investment. 

    The region is home to both Liverpool and Manchester, which have long been seen as the ideal investment location.  

    Currently, the cities boast average rental yields upwards of 7.60% and 7.07%, respectively. 

    However, these are just the averages, with TotallyMoney finding that Liverpool can generate yields as high as 10%. 

    Prices are also incredibly affordable, with Liverpool property valued at almost £100k cheaper than the UK average at £181,278. 

    Similarly, Manchester boasts property around £50k cheaper than the national average, with prices around £231,110. 

    What truly sets apart the North West from the rest of the UK, though, is the property price predictions for the future.  

    According to Savills, house prices in the North West will increase by 11.7% by 2027, which is 5.5% higher than the national average, and is the joint-highest growth rate out of every UK city. 

    If you want to learn more about Liverpool property investment or Manchester property investment, just click the links to read our best-in-class guides – completely for FREE. 

    What Could a £1 Million Investment Look Like? Example Portfolio  

    So, what could a perfect £1 million portfolio look like? 

    Using our prior logic, we’re going to give an ideal example portfolio that is as diverse as possible and is geared to generating the highest returns and the lowest risk. 

    The properties in this list will exclusively be off plan. 

    Off plan property is the perfect way to save thousands on property purchases and get the most bang for your buck. 

    To see a full guide to off plan property, and why you should invest, be sure to check out our off plan property guide. 

    Now that the explanation is out the way, let’s get right into it. 

    ELEMENT – The Quarter Liverpool: A Residential and Student Investment 

    Prices From £74,950 

    8% Returns Available 

    The first property we’ve chosen to fit into this £1 million portfolio is ELEMENT – The Quarter, Liverpool’s first ever eco property. 

    ELEMENT – The Quarter is ideally located nearby to the Knowledge Quarter, which is the epicentre of Liverpool’s thriving technology sector. 

    Factoring in the developments unique selling point of being an eco property, and that it can house both residential and student tenants, and you have an excellent recipe for success. 

    You can buy multiple units in this development, such as two residential developments and two student developments for an incredibly diverse start to your portfolio. 

    This would result in four apartments in a thriving Liverpool project from around £300,000. 

    Merchant’s Wharf Manchester: Waterfront Living 

    Prices From £249,950 

    6.5% Returns Available 

    The next development in our portfolio is adding a slice of luxury. 

    Merchant’s Wharf is located on the stunning Salford waterfront and is found just six minutes outside Manchester city centre. 

    Due to its fantastic location and idyllic living space, these apartments are more expensive than The Quarter with prices from £249,950. 

    Yet they are still more affordable than the UK average, offering investors premium quality but without the premium price. 

    You can buy two two-bedroom apartments in Merchant’s Wharf for around £449,900, adding your overall expenditure to six exciting apartments for £749,700. 

    Ready to Get Started on Your Property Investment Journey?

    Enquire Now!

    Snow Hill Wharf Birmingham: A Thriving New Community 

    Prices From £227,500 

    5% Returns Available 

    Adding more luxury to your portfolio in a different city, Snow Hill Wharf is a stunning new project in the heart of Birmingham city centre. 

    The development is made up of five separate projects – The Colmore, The Regent, The Fazeley, The Lancaster, and The Barker. 

    These premium sets of apartments are ideally located near Snow Hill train station and are gifted with stunning views of nearby canals. 

    Prices start at only £227,500, meaning you could buy another luxury living space to add to your six apartments for a grand total of £977,200. 

    This gives you just shy of £23,000 to invest in other assets. 

    You can then put this very sizeable amount into savings, or invest in stocks like Amazon, or cryptocurrency like Bitcoin. 

    Remember, investing is no guarantee of success, and this content is just a guide. 

    If you want to invest, be sure to speak to a financial adviser to see what is best for you. 

    Expand Your Knowledge With RWinvest’s Investment Guides 

    Figuring out how best to invest 1 million pounds is a challenge, but hopefully this guide has cleared the air. 

    Saving and investing is a fantastic way of growing your money tree, with property investment in particular appearing to be the best choice. 

    Using money-saving accounts like ISAs is also an excellent choice, along with saving and investing some money in stocks. 

    Essentially, asset allocation is critical here, and buying multiple investments in multiple areas is the absolute best way to turn your 1 million pounds into two. 

    If you’ve found this guide useful, perhaps you will like more informative guides just like this one. 

    From learning the best way to invest £30k, £50k£100k, and £500k, to learning 28 tips for getting started with property investment, we’ve got you covered. 

    Just check out our social media channels or sign up to our mailing list so you don’t miss a single release! 

    How to Invest 1 Million Pounds? Contact RWinvest Today! 

    RWinvest RWinvest

    If you think you’re ready to start your investment journey, and think property is the best bet for you, then why not choose RWinvest for your investment? 

    With over 17 years’ experience and multiple awards behind uswe are a property investing company that’s earned our reputation as a leader in residential and student buy to let. 

    Our massive portfolio of success stories has put money into the pockets of thousands of investors just like you. 

    If you want to figure out where to invest a million pounds and wish to learn more about saving and investing, our expert sales team will guide you through all of the best opportunities available on the market. 

    With properties like The Mill and Merchant’s Wharf Duplexes in the thriving North West market, you can be sure your money is in the safest of hands. 

    Investing via an investment platform like us is as easy as ever, and you can buy a top of the range property like ELEMENT – The Quarter in Liverpool at an amazing price. 

    You can start investing today with only £60k!

    Contact us today to learn more. 

    ATTENTION INVESTORS: We’ve just launched our latest development, ‘The Exchange‘, a luxury Liverpool student accommodation, with prices starting at £94,950 with 7% assured returns.


    This guide was updated in April 2023. At the time of reading, some data may no longer be accurate. We are not sharing personal finance or financial advice. This is simply a guide. If you want to see more information regarding personal finance or financial advice, be sure to seek expertise from a financial adviser or a fund manager/wealth manager.

    Sign Up to Our FREE
    Mailing List Today

    Enter your details below to receive exclusive RWInvest property Investment deals before anyone else! 

    Chat to an Experienced
    Property Agent Today

    Enter your details below to get in touch with one of our experienced team today. 

    Welcome, visitor!