Basics behind investing
If you’re new to investing, this short guide offers common reasons why people invest, and should give you an insight into the basic principles behind investing.
If you are confident about making your own investment decisions without advice and you’re ready to start investing, you can view our online
Investments
product range, read our brochures and then apply online from just £3,000.
Why should I invest?
- The main reasons for choosing an investment plan or fund over a regular deposit account are the potential of higher rewards and more choice over what happens to your money, but remember that - unlike deposit accounts - with investments you can lose money.
- Bear in mind that the value of investments and any income they produce can fall as well as rise. You should be willing to invest for a minimum of five years or longer, but be aware that the value at any point will always depend on investment performance, and if this has been poor you could lose money no matter how long you have been invested.
- Investments are often part of a long-term plan to help you to finance your future spending plans. Indeed, one of the most common reasons for investing is to help prepare for the big moments in life. It could be building a deposit for a home, setting aside school or university fees for your children, saving for your retirement or a sports car, boat or second home.
- Investing isn’t just about the end product, though – you may just want to start putting money away to keep your finances organised and to give you peace of mind that you are doing something constructive with your earnings.
- Finally, you’ll want to make your money work as hard as it can. Money in a current account or savings account can lose its value over time due to steady rises in the cost of living. By investing, you can try to beat inflation and keep your money working. Bear in mind, though that the value of investments and any income they produce can go down as well as up. So - unlike savings -you could end up with less than you started with.
Why invest now?
- Following heavy losses in stock markets across the globe for the past few years, there has been something of a resurgence over the last 12 months. That said, the value of shares can fall as well as rise, since there is no knowing whether this improvement will continue.
- Interest rates are currently low. so investments might offer higher potential returns over the long-term than ordinary savings accounts, as long as you are prepared to leave your investment to grow over a period of five years or more. Remember, though, that you may not get any return at all, and you could in fact lose money.
- Also, the ISA limits for stocks and shares accounts have risen to £10,200, so now could be a good time to take advantage of the Government’s generosity. All of our investment products are ISA ready.
Why invest with Barclays?
- With over 300 years of history and expertise in banking, Barclays operates in more than 50 countries; transferring, lending, investing and protecting money for over 49 million clients worldwide.
- We provide some innovative products that are consistently updated, a clear and simple application process, and help and support to guide you in your choices and to help you understand the risks involved.
- A lot of banks like to put their risks in really small writing or hide it away at the back of a brochure or on a web page. We've been helping people invest their money for longer than most other banks and we think you'd prefer to know what the risks are before you make a decision. So we've taken care to explain this clearly as we go.
What's my next move?
Our How to start investing guide offers practical advice on risk, products, industry jargon, ISAs and how to apply for one of our investment plans or funds - in short, all you'll need to make what could be one of the most important decisions of your life.
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