Understand investing

Investing can seem like a daunting journey, but with the right knowledge and mindset, you can take control of your financial future.

What is investing?

Investing is not just putting money aside, like you do with saving. It means using your money to buy something that might increase in value over time. You can invest in all sorts of things and may even be investing without even realising it – like if you were to buy a house.

While investing often offers the chance for higher returns, it also comes with greater risk, as there’s no guarantee that what you invest in will result in profit. Even the value of houses can decrease.

Why invest?

Imagine planting a tree. It needs the right conditions: water, sunlight, and time. Years later, the tree provides shade, fruit, and value in return. Investing is similar. Like your tree, investments need the right market conditions to yield returns. However, you can't guarantee those returns.

When you invest, your money has potential to earn returns. Then those returns can earn more returns. That’s compounding, and it’s one of the most powerful forces in finance. The earlier you start, the more time your money has to be able to grow, helping towards your longer-term goals.

Learn about investing

Reasons for investing

We’ll help you understand the difference between saving and investing.

Investing in funds

We’ll explain how funds work and the different kinds of funds.

Investing in the stock market

This will help you to understand more about investing in the stock market.

Risk and reward

When you invest there’s always risk, so assessing the risk you’re prepared to take is essential to investing successfully.

Types of investment

Learn about the four main investment types, and how having a mix of investments can help spread the risk.

Responsible investing

Explore our approach to responsible investment.

Pensions

What are they, what can you pay and when can you take your pension. Get the basics about pensions, tax relief, lifestyling and more.

ISAs, OEICS and Investment Bonds

What are the other ways you can invest money? Brush up on your knowledge of all things to do with saving and investing.

Investment fraud - what to look out for

Investment fraud is increasing and it’s getting harder to spot scams. Find out how to stay safe from investment fraud.

Tax and ISA Rules

Understanding how tax and ISA rules work can help you keep more of what you earn and grow your investments smarter.

Tax and ISA rules

Research the market

ETF Quicklist

Exchange Traded Funds (ETFs) are a simple, low-cost way to build an investment portfolio.

We've worked with iShares by BlackRock to bring you our ETF Quicklist – a shortlist of ETFs covering different countries and themes.
Access a wide range of stocks with just one investment.

More about ETF Investing

Find your next investment

With thousands of funds available, you can build your own portfolio in no time.

Discover available shares, funds and ETFs in our Funds and Shares Centre. And keep up to date with the latest FTSE data.

Search our Shares Centre

Browse our Funds Centre

Market news

Get up-to-date market news, FTSE performance and relevant insights to help you choose the right investment.

Stay on top of what's happening and where, with our range of tools and market analysis.

Markets and insights

Key terms you should know

Before you get investing, it’s important to get comfortable with the language. Let's dive into some key terms and concepts that will help. Understanding the terminology can help you to make informed decisions when looking to grow your wealth.

 

Key terms you should know

Term

Definition

Term

Asset

Definition

An asset is anything you own that has value - like money, property, or even shares in a company. If it helps you build wealth or if you can sell it for cash, it’s an asset.

Term

Portfolio

Definition

Your portfolio is your personal collection of investments. Your financial footprint, showing how you’re building wealth over time.

Term

Diversification

Definition

Diversification aims to spread your risk by not putting all your money in one place. If one asset falls in value, others might be doing better, helping to add balance to your investments.

Term

Liquidity

Definition

Liquidity is how quickly and easily you can turn something into cash. Cash is almost instant, selling shares usually takes two days, selling a house? That takes time. The more liquid something is, the faster you can use it.

Term

Capital gains

Definition

Capital gains are the profit you make when you sell something for more than you paid. Each tax year you have a capital gains allowance – the amount of profit you can make before paying any capital gains tax.

Term

Compounding

Definition

Simply put, compounding is earnings on earnings. So, any growth you see on your investments will also earn growth. This accumulates over time, it's a snowball effect.

Term

Pound cost averaging

Definition

Pound cost averaging involves investing a fixed amount regularly, no matter the market conditions. By buying consistently, you buy more units at lower prices and less at higher prices. This method helps lessen the impact of market fluctuations.

 

Your money is protected

The Financial Services Compensation Scheme (FSCS) protects up to £85,000 of the eligible money you hold with us.

More about the FSCS

Legal and regulatory information

Find our terms and conditions, how to make a complaint and privacy information for our Share-Dealing Account and Stocks and Shares ISA.

Important information