Learn About Investing

Learn About Investing

Top Ten Investment Questions

Investing isn't for everyone. So we’ve put together some of the most common questions people ask when investing. Click below to see answers that will help inform your decisions.

For more information on specific topics, take a look at our series tackling each in more detail.

How is investing different from saving?

When you save cash it’s (generally) secure and you get back what you’ve saved, plus a bit on top in interest. You can also usually access your money quickly, unless you committed to a longer-term account...

Why invest?

It's a good question, but in short investing gives you a great opportunity to achieve your financial goals. Unlike saving which, due to the effects of inflation, often doesn’t increase your purchasing...

What can I invest in?

The aim of investing is to put money into assets you think will increase in value. The most common assets people invest in are cash, property, bonds and shares. Cash and property are pretty self-explanatory...

What's a realistic return?

The return is basically the amount of profit you have made on your investment. And, as you might expect, this is a tricky question to answer. Different asset classes typically offer different rates of...

How much risk should I take?

We can't tell you how much risk you should take and there is no simple formula to work out where you should sit on the ‘risk scale’. But there is always some element of risk involved in all investments...

What is the risk of investing?

Handling risk plays an important part in the context of investing and there are various levels of risk associated with different types of investment. If you’re saving cash it’s generally pretty safe in...

Should I invest in funds?

So, what is a fund and why should you invest in one? A fund is simply a selection of different stocks or other assets. They are put together and managed by fund managers, and because they are diversified they...

Are my investments working?

Investment success can be measured by calculating the return (profit) on the investment, both in absolute and relative terms. The absolute return is the total amount you get back on top of your original...

How do I get started?

The practicalities of investing are pretty straightforward and there are a variety of financial service providers that can help:

Independent Financial Advisers Banks Stockbrokers (for buying and selling...

How much does it cost?

Unlike savings accounts, which are usually free of charge and where it is simply a matter of comparing interest rates, investing money can come with a range of different fees. Some investment managers...