How To Start Investing

How To Start Investing

For beginners, investing can be a daunting but tempting thing; the promise of easy money will often eclipse the certainty of market fluctuations and even sharp declines. There are however, methods that you can use to better your chances of making a positive return, though it may require one to wait a long while down the road. It takes, for starters, a level-headed person who understands risk and does not expect return at the very beginning, but once you are ready to invest, be sure to follow these tips to help you potentially get the return you were looking for.

Good Investments

One of the most advisable things to do at the beginning of investing is to lose that all-or-nothing attitude. Instead of putting all of your investments into a single company, it would be more advisable to set up a fund through an open-ended investment company (OEIC). You can also set up your investments through a trust. While unit trusts are a simple, objective-driven way of investing in companies, investment trusts are share collections that are slightly more complex but may be built more strategically given the companies or the amounts being invested.

Guaranteed equity bonds are similar too, in that they are regularly invested, but the guarantee of at least an equitable return is provided. Be sure though, to place any investments in an individual savings account, as this entitles you to certain tax relief. If your investment remains below double its original amount, then you will not be liable to any further taxation. But beware—there are thousands of investment funds out there and some are much more effective than others. It is best to consult a financial advisor or any sort of expert on the current markets before you invest.

Spread Your Investments

Just as investment funds are spread between a number of companies, sometimes it is advisable to perform spread betting, or to invest in various funds of low, medium and high risk. Investment funds however, are not all established for exactly the same purpose. Some funds, for example, are set up for supplementary income, while others are growth funds built to gain more investment capital. There are even overseas funds or high-risk funds based upon invigorating overseas markets.

Again, personal inquiry is probably the best way to figure out which funds are best, but in the United Kingdom, it is best to look at the funds based in the FTSE-250, which is a joint venture between the Financial Times and the London Stock Exchange. Another good method for finding the best funds in using a tracker fund, an a passive investment which will give you a small but indicative view into the movements of certain stock indices like the FTSE 100.

Mother and young daughter putting a coin into a piggy bank.

Get Advice

In the end though, nothing is better than asking an expert on the subject. Experts can be found in a variety of ways but the easiest way to get suitable information is to go to a financial advisor. Even though they may be a financial burden at first, there is nothing wrong with ultimately making it a part of your investment. If that does not work, there are many websites devoted to finding the best investment funds in current time.

Experts can also guide you towards putting your money into investments the right way. Some funds will allow you to “drip feed” your money into the market, but equity bonds may not work the same way. Ask your financial advisor about funds that will give you flexibility for money insertion, especially for funds that allow you to stop and start.

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Investogram attempts to provide relevant information about investment options that is meant to be useful, and, aknowledges that the mention of products in this website is no guarantee of performance. Investogram accepts no responsibility whatsoever and reccomends that readers use this site for general education and then consult an investment professional before any purchase.