Share dealing
There are loads of different ways to invest, all suited to different types of people depending on how much you’ve got to invest, how much time you want to commit to investing and how much risk you fancy taking. We’ve compiled some different types of investments to help you understand what it is you’re after and help you get the most out of your money. You can also find out some key things you’ll want to consider when deciding how to invest.
Meet Finder’s investment experts
Our team can help you navigate the world of investing. We start with the basics – like why people invest – explain the jargon and offer practical tips.
Zoe Stabler DipFA
Senior investment writer
Danny Butler
Senior investment publisher
Louise Bastock
Deputy editor
Alice Guy
Investment and tax writer
Roland Head
Investment writer
Liz Edwards
Editor-in-chief
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What is investing?
Investing is where you put your money into shares, property, government bonds, commodities and other financial instruments with the hope of making a profit. Some people like to choose individual company shares and instruments to invest in and create their own “portfolio“. Other investors aren’t interested in creating a portfolio themselves and prefer to choose a ready-made portfolio and pay an additional fee for an expert to manage it on their behalf.
What to consider before you invest
There are a couple of things you need to consider when choosing the best investments.
- Have you got an emergency fund? If you have a bit of cash floating about and don’t have an emergency fund, it could be worth putting it aside in an easy access savings account to make sure you can get hold of it if you need it. Ideally you have a couple of months worth of living expenses set aside in case anything goes wrong, just to ensure that you’re covered.
- Do you have any debt? If you have any expensive debt like credit cards, loans, payday loans or anything else in that category, consider paying it off first. The likelihood is that you’ll save more money in interest on these balances than you’d earn on your investments.
- How much money do you have to invest? The amount you have available to invest makes a huge difference in what you’ll want to invest in – it’s partly due to risk, which we get onto a bit later, but also about how well you diversify your portfolio.
- How long do you want to invest for? This is a huge consideration when investing. If you reckon you’ll need the money in the next three years, it’s probably not a good idea to invest it. You’re better off looking for a high interest savings account to put it away. If you’ll need it soon, make sure it’s easy access.
Do I need a financial advisor?
If you’re lucky (or hard working) enough to have a large amount of money to invest (we’re thinking sums above £50,000), you might want to consider getting yourself a financial adviser. Not that you couldn’t do it yourself, of course, but with such a large chunk of money, you might find value in someone else’s expertise (and save yourself a few headaches!). A financial advisor will help you build a portfolio that suits you, your investment needs and desires and that matches your attitude to risk. They can keep track of it and make changes to it to make sure it stays on track.
Investment products
Shares
When you buy Shares you take ownership of a fraction of a company. As the value of that company goes up or down, your investment does too.
Learn more
Stocks and Shares ISA
Stocks and shares individual savings accounts (ISAs) let you invest without having to pay tax on your profits.
Learn more
ETFs
Exchange traded funds (ETFs) are a type of fund that’s listed on a stock exchange.
Learn more
SIPPs
Self-invested personal pensions (SIPPs) are private pensions where you manage the investments yourself.
Learn more
How to choose the right investment platform
You need to ensure that you make smart decisions about your investments so they match what you’re looking for.
- Figure out which investment option suits you. Do you want a hands on approach or would you prefer to sit back and let the experts manage your investments? We’ve detailed some of your choices below.
- Compare providers. Take a look at our comparison table below to compare investment providers.
- Choose between your chosen provider’s choices. Some providers have a series of different risk profiles to choose between. You may also get the choice to invest in an ethical portfolio. If you choose to create your own portfolio, check out some of their tips for choosing investments.
- Choose the type of account you want. Some providers let you invest in an ISA, which lets you use your ISA allowance, or a pension, which lets you save for retirement.
Compare investment providers
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Pros and cons of investing
Pros
- With savings rates only going as high as 2% at the moment, there’s the potential of much higher returns on your savings with investing. But this isn’t guaranteed.
- With income investing or dividend stocks, you have the chance to receive a regular income when investing.
- If you invest in an ISA, you aren’t taxed on your profits (if you invest up to £20,000 per tax year)
Cons
- It’s risky. Investments can go down in value as well as up, so it’s important to consider the risks and only choose ones that you’re comfortable with.
- It can be time consuming to keep track of your investments and balance your portfolio
- For those interested in robo-advisors, it can be pricey to have an expert manage your portfolio for you.
Bottom line
Investing is a good way of earning some extra interest on your savings, and putting away money regularly can be a really healthy habit. Make sure you choose a provider that suits you, the type of investing you want to do, and the risks you want to take on board.
You can invest for the long term, with a pension, as well as the shorter term, with an ISA or general investment account. You can also invest for your children with junior products. If you do plan to invest your money, ensure you don’t need it in the next few years to allow it to grow.
Ready to compare investment options?
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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