Investments

Getting your financial affairs in good shape, with funds available to meet unforeseen costs, to pay education fees, to reduce your mortgage or to support you in retirement, can increase your sense of security and freedom.

There are, of course, times in our lives when saving money will be difficult (for example, when studying or bringing up children), but it is important to look ahead.

Saving little by little out of your income or investing lump sums when you can, all helps. Holding savings for a long time means they can grow in value as well.

When investing, you take calculated risks to increase your chance of getting higher returns on your money, especially over the longer term (usually five years or more).

There are different types of investments which each have their own level of risk, some will be right for you and some won't. It all depends on your attitude to risk (how much risk you are prepared to take) and what you are trying to achieve with your investments. There is no guarantee you will make money or even that you will get back the same amount you invested in the first place. Investments are different from savings – they are typically designed for the longer term and involve different types of risk.
Before investing, it’s usually a good idea to have sorted out your debts, made sure you’ve looked at protecting yourself against unforeseen events, built up some savings, and arranged your pension. And, once you start investing, it’s highly advisable to spread your risk.

There are various types of investment – think about why you want to invest. Perhaps you are looking for an investment to provide money for a specific purpose in the future. Alternatively, you might want an investment to provide extra income.