Some products such as Bank and Building Society savings accounts and ISA accounts can be suitable for investments of lower than £100. While others, such as Investment Fund products, Stocks and Shares typically are better suited to sums in excess of £1,500. Generally, better terms are offered for larger investments.
In selecting an investment product, the length of time you are prepared to keep your money invested is also material to your choice. If you need immediate access at all times, you should look no further than instant access Bank and Building Society accounts.
If you are less influenced by the need to access your savings quickly and are looking to invest over a longer time horizon, saving through Investment Funds and Stocks and Shares can be considered. For more information, click on product arc on the left.
How you intend to save, by lump sum amounts or regular monthly instalments, may also influence your investment selection. Certain products specifically cater for the regular saver, e.g. Savings Accounts, ISAs, Insurance-Linked Savings and other Fund products, Friendly Society products, or Pension products.
In creating a portfolio you can choose to buy investments direct from product providers or through a financial advisor. If you chose to buy investments direct you have fewer protections than if you consulted an authorised financial advisor.
A few pointers to reduce the risks of buying direct:
- Check that the person or company you are buying from is authorised in the UK to sell the product concerned at www.fsa.gov.uk/register
- Read the terms and conditions of the product and Legal Notices of the provider before you purchase, especially the small print, and keep a printed copy for your records
- Be prepared to cancel within 14 days of a purchase if you find something unexpected
- Ensure you understand the fees you will be charged, especially charges for withdrawals and transfers
- Do not mistake information and marketing material for advice
- Take time to assess the type of product and see how it fits with what you want to buy
- Ensure the investment strategy and the risk profile of the product fit your circumstances
- Having identified a potential purchase, compare its historic performance and, if relevant, that of the associated fund manager to others in the same category. Be aware that past performance is no guarantee of future performance
Tip: It is not always cheaper to "cut out the middle man". Apart from providing independent financial advice, Independent Advisors can sometimes negotiate discounts for bulk buying that would not be offered to a direct sale. Independent Advisors may be willing to share these discounts if you buy product from them without taking advice. Usually when you consult an Advisor on a fee basis, the Advisor will return to you any commissions he would otherwise have received from product providers.
Finally, if you are in any doubt, click below to contact an Independent Advisor.
General
Preparing to Invest
Investment Risk
Selecting Investments & Creating a Portfolio
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