A high-yield savings account also works well for risk-averse investors who want to avoid the risk that they sasol investment won’t get their money back. There are different types of investment accounts available to UK investors. Some are tax-efficient, helping you eliminate an often-overlooked investing expense. Others will let you buy fractional shares or provide investment advice. Corporate bonds typically provide fixed-rate interest fees that can last for several months to decades before maturity.

• Whether you are new to investing, or simply have a low-risk tolerance, you can still make good returns while ensuring the safety of your capital.
• Active investment  involves fund professionals striving to outperform a particular stock index or benchmark using a combination of analysis, research and judgement.
• If the market becomes volatile, investments in CDs and other FDIC-protected accounts won’t lose value and will be there when you need them.
• The payments we receive for those placements affects how and where advertisers’ offers appear on the site.
• Get a better understanding of how the markets work with our easy to ready "how-to" guides.
• Therefore, if you want higher returns, you should expect the ride to be bumpier.

What to consider before you start investing

Get matched to a financial advisor for free with NerdWallet Advisors Match. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Start early, invest often, hold for at least five years, and you’re on the right track. Thanks to the beauty of compound interest, the sooner you can start investing, the better. Let’s look at the most common types of accounts, so you can pick which one or ones are most suitable for you.

I have been writing about all aspects of household finance for over 30 years, aiming to provide information that will help readers make good choices with their money. The financial world can be complex and challenging, so I’m always striving to make it as accessible, manageable and rewarding as possible. But ongoing geopolitical and macroeconomic uncertainty threatens to hamper the performance of investment portfolios in 2025.

Get a better understanding of how the markets work with our easy to ready https://www.tradingview.com/ "how-to" guides. Previously Jackson was the director of Stockcube Research as Head of Investors Intelligence. This pivotal role involved providing market timing advice and research to some of the world’s largest institutions and hedge funds.

Short-term Treasury ETFs

Even temporary shortages or problems in logistics can create wild price swings. Commodity prices often move in long cycles, being depressed for several years and then rising for a similar length of time. In terms of potential returns, commodities probably offer more than bonds but less than stocks and shares. However, it’s worth noting that a special type of brokerage account is needed to trade this class of assets, which are usually only reserved for professionals.

S&P 500 index funds

That’s why if an investor has to choose between buying shares or paying off a credit card, choosing the latter is likely always going to be the far wiser decision. These instruments are issued directly by the UK Treasury through HM Debt Management Office. And investors can either buy them directly or indirectly though a government bond fund or exchange-traded fund (ETF).

Active investing

Although investing in trending investment products may offer you a good deal of wealth now, it may not in the future. We have curated this list to showcase some of the best current investment options, which will also provide long-term benefits. Diversification is the most effective way to minimise risks because your investments are spread out across multiple assets or securities. This means that if one of your assets nosedives, it won’t affect your entire portfolio as you will have other investments that are performing well. When investing your money it’s important to understand that there will always be risks. Whether you are new to investing, or simply have a low-risk tolerance, you can still make good returns while ensuring the safety of your capital.

Why should I consider investing for the long-term?

And despite the phenomenal returns offered by asset classes like stocks and real estate over the last 50 years, none have come even close to reaching this level. Various currency contracts can be purchased that guarantee a certain exchange rate at some point in the future. Businesses primarily use investing in currencies as a risk-reduction tool. But due to the volatile nature of exchange rates, these types of investments require expert knowledge and experience to execute profitably.

You’re our first priority.Every time.

The FTSE 100 hit new all-time highs at some point last year, but a consistent uptrend after that was noticeably absent. With https://www.coronation.com/ Trump in the White House, what and where should you invest if you’re based in the UK? Here we highlight some of the best potential investments for 2025. Typically the main way for investors such as you and me to gain exposure to bonds is by investing in a specialist fund. Global independent ratings agencies, such as Standard & Poor’s, Moody’s and Fitch Ratings, provide credit risk ratings for both government and corporate-backed bonds.

Why use the Good Money Guide?

Russia’s invasion of Ukraine and conflict in the Middle East, plus the great power rivalry between the US and China, have catapulted some investors into a new reality of geopolitical risk. Banks, on the other hand, often perform better when interest rates are rising since high rates allow them to increase the margin between what they charge borrowers and what they pay savers. As these companies embrace, develop and enable artificial intelligence (AI) technologies, their performance could potentially remain strong in 2025.