Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Our step-by-step guide to help you start investing
Our first-time investor series has reached the end of its first part, having covered the basics of investing including opening an account, charges, and the difference between the main assets classes including stocks, bonds and property.
We’ve talked through the process of setting up and maintaining a portfolio and why funds, ETFs and investment trusts are the best places for a first-time investor to start.
The next part of the series will explain the first steps you might take with adding stocks and shares to your portfolio.
Before we go any further, we thought it useful to provide a reminder to readers as to exactly what we’ve covered so far. We’ve included relevant links in case you missed any of the articles or if you would like to share them with your friends and family if they want some help with investing. All the articles are free to read.
What to think about and how to do it. The difference between saving in a cash account and investing and the benefits of compounding.
Understanding how you might be able to hit certain investment goals.
Getting started with investing is a lot easier than you might think.
We run through some examples.
We also look at the difference between lump sum and regular investing.
We explain the difference between the three main accounts.
Funds, investment trusts and ETFs are the best places to start if you’re new to investing.
We discuss the case for buying equities and some of the risks involved.
We look at the world of fixed income and its pros and cons for investors.
The pros and cons of the asset class and the different ways of getting exposure.
Why they should only be considered once you’ve built a core portfolio of funds that invest in stocks and bonds, and you have money you can afford to lose.
How ETFs work, the costs, choices and popular products among retail investors.
They are like a box of chocolates, full of different things that can leave a nice taste.
How to compare trusts and why they have advantages over investment funds.
Adding bonds to an investment portfolio increases diversification and provides more secure sources of income.
How to build your first investment portfolio
Portfolios should be thought as a team, where the whole is greater than the sum of the parts.
Keeping your investments well balanced is easier than it sounds if you follow some basic principles.