Investment for beginners
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?
- 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
How do stock markets work?
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?
How do I invest?
What is a share?
What is a fund?
Investing in an ISA should ALWAYS be your first port of call
How do I research what to invest in?
-
Hargreaves 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 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
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.
A quick note about the reviews on this site: I am an affiliate for every product I review. The vendors of these products give me them without charge in order for me to test them. However all my reviews are done as honestly as possible and I make no promises to the vendor prior to writing my review. Should you click a link on this site that takes you to a paid product this link will be an affiliate link and I will be paid a percentage of the sales price should you decide to purchase that product.
About Author
simkesrb
Affiliate Marketer, Abundant Thinker, Good Listener,Helping Others from Kragujevac – SERBIA 😉