People invest for many reasons, but generally it is to make provision for a regular income either now or later, or for capital growth.
Either way, if you have a lump sum of money or are regularly saving into a bank or building society, the chances are that with interest rates at their current levels, any return is just about keeping pace with inflation.
So, if you have money available to invest, over and above a suitable reserve of readily accessible money in a cash account, other investment options may offer more potential.
Having knowledge and understanding of investments and how they work is just the first step. It's important that you consider your own personal circumstances and goals.
Things to consider:
- Do you want to invest a lump sum, save regularly, or both?
- Are you looking for capital growth, income or both?
- Do you have a set goal in mind?
- How long can you tie up the money you have available for investment?
- How much risk are you comfortable with?
- Do you need to consider the needs of dependants?
It is unlikely that there will be a single investment solution for your goals. A combination of investments is likely to be more appropriate, and the mix will change as you progress through different life stages.