Getting started

Goals

There are many reasons to invest for the longer term – primarily retirement, but also for school fees, a regular income, holidays, property, other high value goods or just to have that feeling that you’re well prepared for all eventualities.

With low savings rates and high inflation, investing in the stock market is looking attractive against cash and deposit-based alternatives.

Here you’ll find everything you need to invest for all sorts of different scenarios in a straightforward fashion – whether you’re a beginner or an expert investor.

Retirement: The fastest growing area of investment is private investors managing their own pension funds. Self Invested Personal Pensions (or SIPPs), allow you to collect up all your existing shares, funds and other investments into an account where you can add to - and manage - your retirement fund. And our charges make sure it’s you and not your financial adviser that’ll be retiring early!

Income: You may want to derive an income from your investments and we offer many income-paying funds and Model Portfolios here. Look out for funds marked "Inc" in their titles. "Acc", by the way, is short for accumulation which indicate it is a growth fund where any dividends are reinvested rather than paid to investors as income.

School /University Fees: We need to get used to the fact that we’re on our own now when it comes to providing a decent education for our children. Investing wisely – perhaps using a tax-efficient ISA every year - can ensure that paying school or university fees comes as less of a shock as your children grow up. We have a whole host of products for all investors, from managed products, through to self select stocks and shares ISAs.

Significant Future Purchases: Whether it’s a villa abroad, a Ferrari or Aston Martin or that holiday of a lifetime, then we offer a huge range of funds (unit trusts, investment trusts, Exchange Traded Funds or individual shares) to add into your portfolio. And we’ve made it easier than ever to choose yourself.

Risk

Risk needn’t be viewed as all bad, but the rule of thumb is the greater the risk the greater the potential for gain - or loss - and the lower the risk, the smaller the potential for gain or loss.

Very Low Risk

Very low-risk investors typically want to take no risk with their capital at all. There are funds which are classified as very low risk, based on their historic performance and volatility, which aim to provide returns at or slightly above those which may be available from savings accounts. However, please be aware that there is still a risk with any investment, including those classified as very low risk, and that the value and return of your investment may fall or may not keep up with inflation.

Very low-risk investors should not assume that putting their cash ‘under the mattress’, or even into a bank, is risk-free. Even if your cash is earning a small amount of interest, unless the interest earned is more than the prevailing inflation rate, your capital could be eroded by inflation. Alternative options for very low-risk investors include National Savings & Investment – in particular inflation-linked accounts – and Cash ISAs where the interest from these accounts is tax-free.

Low Risk

Low-risk investors typically want to take very little risk with their capital, while at the same time acknowledging that some investment risk may be necessary in order to secure returns that are greater than current savings rates. There are funds which are classified as low risk, based on their historic performance and volatility, which aim to provide better long-term returns than savings accounts. These funds typically invest in high-quality government or corporate bonds. However, please be aware that there is still a risk with any investment, including those classified as low risk, that the value and return of your investment may fall or may not keep up with inflation.

Alternative options for very low-risk investors include National Savings & Investment – in particular inflation-linked accounts – and Cash ISAs where the interest from these accounts is tax-free.

Medium Risk

Medium-risk investors are typically prepared to take some risk with their capital and acknowledge that some investment risk is necessary in order to secure returns that are greater than current savings rates. A significant number of funds are classified as medium risk, based on their historic performance and volatility, which aim to provide better long-term returns than savings accounts. These funds typically invest in a diversified range of UK equities, high-quality government or corporate bonds, property and cash. Medium-risk funds usually have some exposure to higher-risk equity investments and the value and return of your investment may fall or may not keep up with inflation.

High Risk

High-risk investors are typically prepared to take significant risk with their capital and are fully aware of the risks of investing and are prepared to take this risk in the hope that their long-term returns are much greater than current savings and inflation rates. Funds that are classified as high risk, based on their historic performance and volatility, can invest up to 100% in a diversified range of UK and international equities. They may have some exposure to high-quality government or corporate bonds, property and cash, but the emphasis is on higher-risk investments with the aim of better long-term returns. High-risk funds usually have significant, and possibly total, exposure to higher-risk equity investments and the value and return of your investment may fall or may not keep up with inflation.

Very High Risk

Very high-risk investors are prepared to take significant risk with their capital and are fully aware of the risks of investing. These investors are prepared to take this risk in the hope that their long-term returns are significantly greater than current savings and inflation rates. Funds that are classified as very high risk, based on their historic performance and volatility, typically invest up to 100% in a diversified range of UK and international equities and will often focus on developing nations or early-stage companies where the potential for gain or loss is very high. Very high-risk funds have additional risks attached, as well as full exposure to higher-risk equity investments and the value and return of your investment may fall or may not keep up with inflation.

Experience

This site is designed to offer the very best information and guidance in the market, from our large team of journalists, first rate information and tools as well as from other users via ratings, comments and recommendations.

We have designed the site and the products within it to offer a straightforward way to gain control and manage your investment affairs, whether you are a beginner or an expert investor.

You can also use the site to learn more about investing – there is a huge library of educational content about the world of investing from our own journalists and experts as well as our sister titles, Money Observer and Moneywise.