Investing doesn’t need to be difficult. We look at three ways to keep things simple.
Chris Hill, Investment Writer
It can seem like there’s a lot to think about when you invest for the first time.
When should you invest? How should you invest? Where should you invest?
These are all important things to consider. You should also be clear on the differences between saving and investing before getting started, as investing involves risk. Investments go down as well as up in value, so you could get back less than you put in.
But once you’ve got to grips with the basics, making a start doesn’t need to be difficult. Here are three ways to keep things simple.
This isn’t personal advice. If you’re not sure what’s best for you, please ask for advice.
Investing should be for the long term – five years or more. You should think of it as a marathon, not a sprint.
By taking this long-term view, you could give yourself a better chance of growing your money over the long term. In fact, for 91% of 10-year periods, investments in shares have done better than holding cash.
The longer you leave your money invested, the more likely you are to benefit from the power of compounding, where any returns are reinvested for a snowball effect over time.
Read more about long-term investing
Much like exercise, investing can be particularly powerful if you’re able to make it a regular habit.
There are two easy ways to do this:
Invest automatically each month with a Direct Debit.
This is probably the easiest way to invest. You won’t have to think about when to invest, or trying to time the market. With HL, you can get started from £25 a month.
Add one-off lump sums when you have spare cash.
If you don’t want to commit to a Direct Debit each month, you can invest on an ad-hoc basis. For example, if you have spare cash left over at the end of the month, or you receive a lump sum from your workplace or family.
See how to invest by Direct Debit
If you need some help with where to invest, we offer a range of ready-made options.
We’ll soon be launching 4 new, low-cost all-in-one funds, managed by HL experts.
As the only investment you need for a diversified portfolio, you can pick one fund based on the level of risk you’re willing to take. Our managers will then do the hard work for you, picking investments that track the market based on your chosen risk level. They’ll manage it day-to-day, so you just need to check in on it every 6 months or so to make sure it’s still right for you.
You can invest from £100 as a lump sum, or £25 as a monthly Direct Debit. And if you invest a lump sum by 11:59pm 5 June, you’ll get the fixed £1 per unit launch price.
Find out more and get investing
HL Funds are managed by HL’s sister company, Hargreaves Lansdown Fund Managers Ltd.
It’s easy to transfer to HL, but there are some steps you can take to help speed up the process. Read on to discover three essential transfer tips, plus more about our latest transfer offer.
When interest rates on cash increase, you might be thinking about whether to sell your Stocks and Shares ISA investments, or sit tight.
We look at how to invest tax efficiently, the comparisons between a Stocks and Shares ISA and Lifetime ISA, and what to watch out for if you choose to have both.
