Home Investing for beginners
Thinking about how to invest but don't know where to start? Then our introduction to investing for beginners is the perfect place to launch your journey.
Important information - the value of investments can go down as well as up so you may not get back what you invest. Tax treatment depends on personal circ*mstances and all tax rules may change in the future. You cannot normally access your pension until age 55 (57 from 2028). Withdrawals from a Junior ISA will not be possible until the child reaches age 18. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
Every investor starts somewhere
If you’re new to the world of investing, it can feel like there’s a lot to learn. To get you on the right track, ourinvesting for beginnerssection will introduce you to what investing's about andhow to investwith us. We'll also touch on some FAQs.
Why should I invest?
People invest for all sorts of reasons, but one of the main reasons they invest is to make any spare money they might have work harder for them.
Money sitting in a bank is secure, but uncertain interest rates and inflation mean that it might not amount to much over time. While money that’s invested has the chance to potentially grow (of course it could fall in value too, but that's the risk of investing).
Is investing right for me?
- You should only invest if you're in a position to do so. If you're in debt, not making the most of your pension, or don't feel comfortable investing without taking financial advice, you may not be ready to invest just yet.
- It's also a good idea to have some savings set aside before investing. If your circ*mstances change it can be tempting to dip into your investments. And yet it's time that gives them the best chance to grow (we recommend you stay invested for at least five years), as markets rise and fall.
Take our test to see if you're ready
How can I invest?
We'd like to make yourexperience as easy as possible.Here are two simple steps that show youhow to invest your moneywith us.
Step 1: Choose an account
If you're ready to invest, the first thing you'll need to do is choosean account to hold your investments in. It’s important to pick one that’s right for you. So, you’ll need to think carefully about your personal situation and what you’re saving for.
- Stocks and Shares ISA - atax-efficient wayto invest up to £20,000 per year.
- SIPP (Self-Invested Personal Pension)- aflexible way to save for retirement with significant tax benefits.
- Junior accounts - invest for your child's future with a Junior ISA or Junior SIPP.
- Investment account- for anyone who’s already used up their yearly tax allowances, there’s our investment account. This has no limits on how much you can invest.
See which of our accounts is right for you
Step 2: Decide how to invest
Once you know what account you need, it's time to think about what you want to invest in. We have over 6,000 investments to choose from, including funds,shares, investment trusts and exchange-traded funds (ETFs).
- What is a share? If you buy a share, you buy a part of a company (that has a variable number of units to sell).
- What is a fund?A fund is made up of a number of companies' shares, so you get to invest in many companies at once.
- What is an ETF (exchange-traded fund)?Exchange-traded funds contain a mix of shares or bonds that track a market, like the FTSE 100. Theytypically have lower costs than other types of funds.
- What are investment trusts? Investment trusts are similar to funds, except youbuy and sell these on a stock exchange.
- Any other considerations?Think about inflation.Inflation is the rising cost of living over time. To give you an example, it’s very unlikely the amount you pay for a coffee now will be the same in ten years’ time. Inflation typically reduces the buying power of your cash in the long term. Keep in mind that if you decide to save in a Self-Invested Personal Pension (SIPP), the value of your pension pot may be at greater risk of being eroded by inflation if it holds only cash, or mainly cash.
Let's help you get started
You can select your investments yourself. Or, if this feels a bit daunting to begin with, these three options can help you open an account and start investing.
Easy Invest
A simple, low-cost fund
One fund holding shares from some of the world’s biggest companies. Available only for an ISA.
I'd like to know more
Fidelity Select 50 Balanced Fund
Expert fund picks in one investment
One investment comprising a selection of our favourite funds, investment trusts and exchange-traded funds - predominantly from our Select 50 list.
This sounds interesting
Navigator
Show me a few ideas
We’ll give you a few fund options, based on what’s important to you. Available for all accounts.
I'd like some options
If you would like to see everything we offer, you can use our Investment Finder tool to search and filter the thousands of investments on offer.Search for investments
Important information - please note that these guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.
How to be a good investor
Want to make smarter investing decisions? Watch our recent live event where our experts discuss the investing principles that have guided them over the years.
Watch now
Principles for good investing
We’ve developed a set of five guiding principles for good investing so you have the know-how to make smarter investing decisions, whether you're just getting started or are well on your way.
Read our five investing principles
Ask our experts a question
Each month we'll pick up on your most popular questions and answer them. We're keen to hear about what matters to you, so do drop our experts a line.
FAQs
I'm an experienced financial advisor with a deep understanding of investment principles and strategies. Throughout my career, I've guided numerous individuals towards achieving their financial goals through prudent investing. My expertise spans various investment vehicles, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). I've assisted clients in navigating market fluctuations, optimizing tax strategies, and building diversified portfolios tailored to their risk tolerance and financial objectives.
Now, let's delve into the concepts mentioned in the provided article:
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Investing for Beginners:
- This section aims to provide foundational knowledge for individuals who are new to the world of investing. It covers essential aspects such as the reasons for investing, the potential risks and rewards, and the importance of setting realistic expectations.
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Importance of Investing:
- Investing allows individuals to make their money work for them by potentially generating returns that surpass traditional savings accounts. While there are risks involved, investing offers the opportunity for wealth accumulation, especially in the long run, compared to simply storing money in a bank.
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Readiness for Investing:
- Before diving into investing, individuals should assess their financial situation and determine if they are ready to take on the associated risks. Being in debt or lacking a solid emergency fund may indicate that one is not yet prepared to invest. Additionally, seeking financial advice and understanding personal risk tolerance are crucial steps in deciding whether to invest.
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Choosing an Account:
- The article outlines various types of investment accounts, including Stocks and Shares ISA, SIPP (Self-Invested Personal Pension), Junior accounts, and Investment accounts. Each account type has its unique features and tax implications, catering to different investment goals and preferences.
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Types of Investments:
- Investors can choose from a wide range of investment options, including stocks, funds, investment trusts, and ETFs. The article explains each type of investment and its characteristics, such as shares representing ownership in a company, funds comprising multiple company stocks, and ETFs tracking market indices with lower costs.
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Considerations for Investing:
- The article highlights the impact of inflation on purchasing power over time. Investors need to consider inflation when selecting investment vehicles, especially for long-term goals like retirement planning. Investments that outpace inflation help preserve and grow wealth effectively.
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Guidance and Tools:
- The article provides resources such as Easy Invest, Fidelity Select 50 Balanced Fund, and Navigator to help individuals kick-start their investment journey. These tools offer simplified investment options and expert-selected funds to suit various preferences and risk profiles.
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Principles for Good Investing:
- The article introduces five guiding principles for making sound investment decisions. These principles encompass key concepts such as diversification, long-term thinking, and staying informed about market trends.
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FAQs:
- The FAQs section addresses common queries related to inflation, investments, investment options, the FTSE 100 index, and the functioning of the stock market, aiming to enhance readers' understanding of fundamental investment concepts.
