How much money do you need to start investing?

It is easy to imagine that investment is only for the wealthy.

At Continuum, we disagree. Certainly the more you have to invest, the greater the returns can be – but the simple fact is that you don’t need to be wealthy to start considering investing in stock market products.

In fact, with the returns from savings accounts still so low that any growth in your money is likely to be eaten away by inflation, investing could be the basis of your wealth creation plans.

Why is investing different from saving?

With savings, your money remains as cash. This means that it is secure, and will mean predictable returns in most savings accounts. Both cash savings and investments are protected by the government’s Financial Services Compensation Scheme (FSCS) to a maximum of £85,000 per institution in the unlikely event of a bank, building society or investment company failing, your money would be protected to this level.

With an investment your money is used to buy something, such as shares on the stock exchange, rather than left as cash. This means there can be no guarantees, but in exchange for the risk, you can potentially expect a higher return.

Investing through a fund

Collective investments products exist to make investing in the stock market easier. They are pooled investments – your money is pooled with that of other investors, and managed on your behalf. Pooling investments in this way ensures that even with a small initial investment, you can have good diversification, which spreads risks more effectively than you could yourself.

However, there is another valuable advantage. Many collective investments offer the opportunity to make regular investments, which allow you to pay into your fund as much or as little as you want. This makes investing as simple as a regular savings plan, but potentially much more rewarding.

Getting started with the fund that’s right for you

So even small regular payments have the potential to make you a successful investor if you find the right fund. But there are a bewildering number of funds to choose from – and this is where you need your Continuum adviser to help you.

They can work with you to understand your financial objectives, determine your attitude to risk – and how your investments can sit alongside your other financial arrangements.

So, it maybe you are looking for an investment fund that provides a steady income to supplement your retirement. We can shortlist funds designed to generate income, and with the right balance between caution and speculation to ensure you feel comfortable with the returns and the security your money enjoys.

It may be that you will need us to find a fund that will help you build capital, or reflect your interests in a particular area, from industries like new technologies or agriculture to particular markets. With our knowledge of the investment fund industry, we can find the funds with the approach you need – but we don’t stop there. We will vet the funds we shortlist for the performance they deliver, and ensure that their fees are reasonable. Even when we have found the funds that really meet your needs, we will continue to keep an eye on their returns to make sure they stay the best solution for your investment needs.

Getting the fund that is right for you, your interests and your attitude to investment and risk is essential. At Continuum, we can help you find the fund that is right for you, and help you become an investor, even if you don’t have a fortune to invest.

The value of investments can fall as well as rise and you may get back less than you invested. Your capital is at risk, equity investments do not offer the same capital security as deposit accounts.

The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.