Will this be the year you start investing? - Investments - News - Moneyfacts


Will this be the year you start investing?

Will this be the year you start investing?

Category: Investments

Updated: 21/01/2014
First Published: 21/01/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

With savings rates at record lows and there currently being only 77 accounts that negate the effects of tax and inflation, a lot of savers might be toying with the idea of investments to generate a more measurable return. So, will this be the year you play the stock market?

Investing in shares could be a viable option for those that want the possibility of meaningful returns, although they of course need to be comfortable with the added risk that comes with it. Unlike with a regular savings account there's no guarantee that you'll get your initial deposit back, and although you could get a great return the value of any investment could go down as well as up. The risk is a lot higher, but then so are the potential rewards.

Using a recognised share dealing service such as ours means anyone, with sufficient funds and appetite for risk, can get into the market. It's possible to buy and sell shares in most UK-listed companies, and keeping an eye on the FTSE 100 (or whichever index your shares are listed in) can give you valuable insight into the market so you can decide how to proceed.

Of course, getting suitable financial advice is essential before starting your investment journey. Share dealing is a lot more complex than traditional savings accounts so you need to be prepared for the added risk, but for those that want an alternative to current savings rates it could be worth thinking about.

What Next?

Find out more about share dealing

Check out our pick of the top 6 cash ISAs for a low-risk alternative

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Pound plummets as FTSE soars

A second significant fall in the pound has taken place. While this drop may be unhappy news for people who are about to go on holiday, it has given the FTSE 100 quite a boost, as it has passed the 7,000 mark for the second time in as many years.

Would you risk the stock market for £400,000?

It’s becoming increasingly difficult to secure decent returns on cash savings these days, yet we all know that investing in cash is the safest option. But would you risk that level of security for the chance of a £400,000 profit?

Don’t be a victim of investment fraud

Low savings rates have led many of us to desperately scour the market in hopes of finding a deal that will pay more. However, this search means that more and more savers are being tempted by unfamiliar investments.