Investment for beginners

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Stock chart with a magnifying glass


Many savers fed up with risible rates of return on their cash are being tempted to invest in stock markets instead. Our beginners’ guide explains what taking a punt on shares really means for your money, what and where to buy, and how much risk to take.


Investing for beginners:


What is an investment?

general invest

  • Shares
  • Bonds
  • Funds
  • Government bonds (gilts)
  • UK property market
  • Farmland
  • Vintage cars
  • Wine
  • Fledgling technology firms
  • Art, eg, paintings, sculptures

For most, investing means putting money in the stock market

A young couple: Pensions aren't just for old people


How do stock markets work?

A tax rocket

Why does a company share price rise and fall?


What kind of growth can I expect from investing?


Sector investing in…


Over one year


Over five years


Over 10 years


UK income shares

19%

85%

75%


UK company bonds

8%

40%

76%


US stock markets

31%

128%

160%

China

48%

96%

152%

European countries (but not the UK)

32%

122%

13%

Asia (incl Japan)

37%

94%

113%


A mix of global stock markets

30%

96%

98%



ALWAYS remember the five golden rules of investing:


Is investing right for me?


How much should I set aside to put in?

A pile of money


How do I invest?

Automatic enrolment into a pension scheme


What is a share?


What is a fund?

share certificate


Investing in an ISA should ALWAYS be your first port of call


How do I research what to invest in?

search investment


  • Hargreaves Lansdown*

    hargreaves and lansdown
    It has a helpful and easy-to-navigate website jam-packed with free information about funds – and you can make the most of this whether you sign up to buy funds or not.


  • Interactive Investor

    Interactive Investor
    Interactive Investor has a wide range of information, including

    beginners’ guides

    on a range of investments and a glossary of terms you might come across while you’re researching investments.


  • Bestinvest

    bestin
    Bestinvest’s research team looks at more than 85,000 funds and compiles research on a monthly basis.


  • Charles Stanley Direct*


    The market data section of this website breaks down lists of FTSE companies and allows you to check performance for any time period from one day to three years.

   

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