answered 1 year ago
Well...shares may not be the best investments for you, and nobody without accurate, careful understanding of your timescale, income, prospects, age and state of health can really give you an answer. Here are a few points, though.
Individual shares are very risky. A share is the ownership of a small part of one company, and if the company does very well, then so will you. But if the company goes bust you will lose it all. Stockbrokers are the best people to advise on individual shares, but they will expect you to have a substantial amount to invest - perhaps £100,000 or more.
'Funds' are generally also invested largely in shares, but in this case you are participating in the average performance of a large number of companies - maybe 100 or more. Different kinds of funds bear different risks, with 'riskier' funds tending to be more suitable for younger people and those with a resilient attitude, who will still sleep soundly if the value of their funds drops.
Other, lower risk investments include corporate bond funds and deposit accounts. These tend to be suited to people who want to reduce their risk, or need income, or perhaps (to make a generalisation) are rather older. If you are saving to buy a house within say the next year or two, there really is no sensible alternative to a straightforward savings or deposit account.
Then again, other investments such as rental property and so on can form part of a longer term investment strategy. It is more important than ever before to develop and maintain a robust, long-term savings strategy. It is really worthwhile to use the guidance of an independent financial adviser.
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