woman looking out of a window

A Beginner’s Guide to Investing

Do you have money sat in your bank savings account? Are you looking for greater returns on your money than the interest it earns?

If the answer is yes, it could be worth thinking about investing some of it. After all, you’ve worked extremely hard for your money. Why not make it work harder for you.

The right investment for you will depend on how much you want to invest, for how long and, more importantly, how much risk you are prepared to take. Generally speaking the more risk you take and the longer you invest for, the higher the potential return you could achieve. Would you be prepared to see the value of your investment fluctuate in the short term if it might grow in the longer term?

The free Money Advice Service has a useful online tool to help you work out what your attitude to taking risk is Money Advice Service – Know Your Risk Appetite.

Trying to invest some of your money is important, especially with bank and building society interest rates being so low. Think about what £5 would buy you 10 years ago and what £5 could buy you now if you’d just left it in your purse or under the preverbal mattress.

You don’t need a large lump sum to start investing; a modest amount on a regular basis can grow into a really useful amount. Always make sure you’ve got enough money that you can access quickly and easily. A general guide would be enough to cover six months bills and living expenses.

There are lots of things you can invest in:

  • Stocks and shares
  • Government bonds
  • Corporate bonds
  • Commercial property
  • Residential property
  • Foreign currencies
  • Gold, oil, coffee or other commodities

Investing everything you’ve got in just one company would be very high risk as sometimes even the best known companies can go out of business.

However, unless the amount you have to invest is significant it can often be difficult and costly to invest directly in a range of investment types which helps to spread your risk. That’s why investment funds or collective investments are useful. They allow savers with smaller amounts to invest in a wide range of investments that, as an individual, would be unaffordable and often inaccessible.

At Healthy Investment, we collectively place Members’ monies in our Ethical With-profits Fund, which invests in government and corporate bonds, UK and global shares, commercial property and a small amount of cash. We use professional fund managers to make decisions on the best mix of investments to hold in the fund portfolio.

When you are investing it’s important to think about why. Maybe you’ve saved for a long time and want to generate an income in retirement. Maybe you want to save for something special like the holiday of a lifetime or a house deposit. Or maybe you want to do something special for your children or grandchildren and give them a good financial start in life.

Whatever the reasons why you want to save, it will have an impact on what you invest in and for how long.

If you are ever in doubt about a particular investment you might want to talk to an independent financial adviser, although they may charge you for this, or you can talk to us. Whilst we can’t give you financial advice or recommend a particular product or fund, our knowledgeable staff can answer most of your questions and give you lots of information on the investments we provide.

For further information about how we invest Members’ money and the ethical investment products we provide, please visit our website at www.healthyinvestment.co.uk or contact the friendly team at Healthy Investment on 0161 762 5790; or email enquiries@healthyinvestment.co.uk.

Alternatively, you can find out about our other ethical products by clicking on the links below:-