Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.
IF you’re feeling nervous about investing right now, then you’re not alone. With ongoing uncertainty still rife - whether it’s covid or the cost of living, prices at the pumps or increasing tensions between Russia and Ukraine - there’s a lot to worry about. All of which can easily lead you to the conclusion that investing is one more thing you just haven’t got the time/stomach/inclination to deal with right now.
But that thinking is all wrong. Because getting to grips with your finances and giving you some - joy of joys - actual certainty in your life, is one thing that is very much, firmly in your control.
Here’s how to do it:
1. Drip-feed your investments
Now is the time to take a slow and steady approach to your savings and investment goals. And an ISA is a great way to do just that, giving you the ability to drip-feed small, regular sums into your savings pot, which might be particularly appealing right now. There is no need to commit big chunks of cash to your investments at a time when you’re not sure what’s around the corner.
With a Fidelity ISA, you can set up a regular savings plan to invest from £25. That will still give you access to the full range of investments available, while taking away the task of working out the ‘best time’ to invest.
Investing will take care of itself. You can sit back and relax in the knowledge that, whatever else is going on in the world, you have one less thing to worry about.
2. Keep costs down
There is a very good reason why the Fidelity Index World Fund ranked among the top five most-actively traded funds on the Fidelity Personal Investing platform in 2021 - cost.
Rather than being actively run by a manager, passive funds like this aim to simply emulate or track that index instead. The trade-off is that these funds won’t outperform the market but on the plus-side, costs are much lower.
The beauty of a Fidelity ISA is that you can pick and choose what you invest in. So as your confidence grows you can throw some actively-managed funds into the mix, as you choose.
Take a look at the active and passive funds we offer at Fidelity.
3. Maintain a balance
The key is to build a diverse portfolio with a mix of different investments that suit your attitude to risk. A balanced investment portfolio might have in it a mix of individual stocks, funds, property, commodities, bonds and cash.
A Fidelity ISA lets you choose exactly what you invest in, with lots of options on offer, plus online tools and expert guidance to help with your decisions.
Our Investment Finder tool is a good place to start, giving you an easy way to review our full range of over 4,000 investment options. Or you may like to check out Tom Stevenson’s four Fund Picks for 2022.
Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
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Financial Friday: 3 ISA tips for nervous investors
With these simple strategies you can get invested and stay on track