It is well-known that investing in stocks and shares can be a profitable move, yet buying into funds to help your money grow faster is far from simple.
There are important rules and considerations to take into account before heading down the investment route to ensure you are well prepared for the ups and downs that it can bring.
Below is our simple guide on what to consider before you invest:
Be prepared to lose money
How would you feel if you initially lost money when investing in the stock market? You may invest just before the stock market goes up or down which will show on your first statement. If you are prepared to lose money before you gain, you are off to a good start.
Patience is a virtue
It can take at least three years – sometimes more – for a stock market investment to develop, so you will need to be patient. Huge gains in short periods are unlikely so leave your investment alone for a while.
Investing in stocks and shares can be risky, so spread this risk by splitting your money and investing in a selection of funds. Trusts (a collection of shares) and guaranteed equity bonds are good choices, whilst you should strongly consider taking advantage of new ISA allowances.
Ask an expert
If you have a large sum to invest, you may want to consider consulting a financial advisor who will be able to narrow down a selection of funds that work for you. Here at Accountant Directory you can find an accountant local to you who can provide ongoing support and advice. Use our advanced search tool to get in touch with a professional today.