Investing is a savvy and sensible way to put your money to good use and hopefully create a profit out of it; because business, after all, is about making a profit. Deciding to invest is one thing, but deciding what to invest in is an overwhelming venture in itself.
With that in mind, below are some starter tips to help you with your investment plans.
- You Don’t Have To Be Making A Great Amount Of Money To Invest
Investment can sometimes bring connotations of people with so much money they don’t know what to do with it, but it’s important to note that most investment funds will accept a minimum monthly payment of £50.
It’s also crucial to remember that investment isn’t an instant return, though. If you’re deciding to invest, you have to be in it for the long haul.
- Don’t Be Afraid To Ask For Guidance
There are numerous consultants and experts out there who can best direct you where to put your money. Try a search fund if you’d rather somebody else search for investment opportunities on your behalf.
They can collate the information and save you a lot of time and hassle, which is always a bonus.
- Take The Time To Think About What You Want To Invest In
There are a lot of options, which include:
- Cash investments
- Fixed interest investments
- Shares
Cash is a safe option, as it is protected by the Financial Services Compensation Scheme, but your interest return from banks can sometimes be pitiful. Shares in companies can rise and fall, but if the latter, this is obviously the coveted result. Fixed interest investments are loans to companies which hold a reliable return on your money.
There are many more options, but whatever you choose, be sure to do your research.
- Be Sure To Invest In More Than One Option
Putting all your investment money into one selection is a dangerous decision, as you could lose everything if that one scheme fails. It’s better to spread out your money into different investments, giving you more of a chance that one of them will succeed.
It’s better to build a portfolio and build assets.
- Buy Through A Fund Supermarket Or Platform
Although you’re trying to make money, investment still costs money. Buying directly from a fund manager will come with a fee, and this can be avoided by buying units through a fund supermarket, which is also easier.
Doing so also lets you review and keep all your information in one place. These arrangements come with either a flat fee or a percentage of your investment.
- Invest At Regular Intervals Rather Than All At Once
If you have a lump sum ready to go, it’s hard to choose the right moment to invest it. It’s better to invest smaller portions once a month, for example, to improve the chances of maximising your returns.
This will mean attaining a smaller amount of shares but will also mean that you can buy more at a lower price if the market is falling.
