Investment options for beginners: a guide to helping you grow your money

Not only can anyone become an investor, but almost everybody should.

You don’t need to be rich, you don’t need to be an expert, and you don’t even have to be blessed with good luck.

The chances are that you are an investor already. The deductions made for your company pension are invested on your behalf.

But important as your pension is, it can’t help with your financial and life goals before pension time rolls round.

For that you need to arrange some investments of your own. 

The good news is that becoming an investor is easy to do, and with some expert help, building up the kind of wealth you want may be easier than you think.

Investment or savings?

Investment is different from savings.

Savings stay as cash. The account provider charges interest when it lends your money out – and gives you a share of that interest. They are secure and protected by the government’s deposit guarantee scheme. 

Investments are where your money is used to buy something. 

There are risks. You risk not getting back as much as you invested – or even not getting back anything at all. But investment has the potential to earn a great deal more than the same money in cash savings.Interest rates on savings accounts have become better in recent months, but they are still far below the kind of returns that may be possible with investments.

So how can you start investing?

Some people invest wealth they already have, to provide an additional income – but if you are new to investing, you will probably be looking to grow your wealth – which is known (logically enough) as growth investment.

There are many different assets that you could invest in. Bonds or fixed interest stocks are really lending to governments and companies. They pay a fixed level of interest, which may make them better for income investors.But there is a way to enjoy the growth potential of the stock market, without quite so much risk.

Spreading the risk, and maximising your returns

You shouldn’t put all your wealth into shares in a single company. They might be the next Google but could just as easily be the next Blockbuster and lose every penny.

But the more variety you can build into your investment portfolio – known as diversification – the lower the overall risk. With a portfolio of investments, the hope is that those that perform well will balance out, or outweigh, those that don’t.

This means a practical problem. Having a broad enough diversity of shares can be almost impossible, especially when you are just starting out.

Fortunately, there is a solution, using an Independent Financial Adviser. 

Firstly, financial advisers possess specialised knowledge and expertise in the complex world of finance and investment, enabling them to tailor strategies that align with your unique financial goals and risk tolerance.

They can help you navigate the intricate web of investment options, helping you to ensure that your assets are diversified across various asset classes, reducing exposure to risk.

Moreover, advisers provide a crucial objective perspective, helping you make informed decisions despite market volatility and emotional biases, ultimately increasing the likelihood of achieving long-term financial success and security.

So, to start off in the world of investment today, speak to our expert team.

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.

The value of investments can fall as well as rise and you may get back less than you invested.

Investments do not include the same security of capital which is afforded with cash accounts.

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