The basics of investing

Investing means putting your money to work with the aim of growing it over time. Rather than leaving cash sitting still, you buy assets — like shares in companies, funds or ETFs — that have the potential to increase in value.

Why people invest

Over the long term, investing has historically offered the potential for higher returns than leaving money in cash. People invest to build wealth, save for big goals, or fund their retirement. It's important to remember that your capital is at risk — the value of investments can go down as well as up.

Key principles

• Invest for the long term. Time in the market generally matters more than timing the market.
• Diversify. Spreading your money across different investments helps manage risk.
• Keep costs low. Fees compound over time, so lower costs can make a real difference.
• Stay consistent. Investing regularly can smooth out the ups and downs of the market.

Getting started

You don't need to be an expert to begin. Decide how much you're comfortable investing, choose an account that suits your goals — such as a Stocks & Shares ISA — and start building a diversified portfolio. Use tools like our compound interest calculator to see how your money could grow over time.