Investing basics: funds, wrappers, fees and risk

Learn

Capital at risk. The value of investments can go down as well as up, and you may get back less than you put in. Past performance doesn't tell you what will happen next. This is general education. Not personal advice, and not a recommendation of any product or provider.

How to start investing, without the jargonIndex funds, why time in the market matters more than timing, and how to begin with as little as £25.6 min
Risk and return: the trade-off behind every investmentWhy higher potential returns come with bigger ups and downs, and how to think about that in plain English.6 min
Funds, index funds and ETFs, explainedWhat a fund actually is, how index funds and ETFs differ, and what the OCF (the yearly fund fee) tells you. Plain English, no jargon.5 min
Diversification: why spreading mattersThe 'don't put all your eggs in one basket' idea, and why spreading investments can smooth the ride.4 min
Where investments live: ISA, LISA, pension, GIAInvestments sit inside a 'wrapper' that decides how they're taxed. Here's what each one is, conceptually.7 min
What investing costs: fees in plain EnglishThe two main costs, the fund's OCF and the platform fee, and why small percentages add up over time.5 min
Drip-feeding: investing little and oftenWhy investing a set amount regularly, known as pound-cost averaging, is a common low-stress way to start.4 min
Known vs assumed returnsWhy paying down a mortgage is a saving at your mortgage rate while investing is an assumption, and why projections are always labelled illustrative.5 min
Compound interest: your secret weaponThe simple idea that turns small, regular saving into life-changing sums.4 min

The value of investments can go down as well as up, and you may get back less than you put in; past performance doesn't tell you what will happen next. This is general financial education, not personal advice.

Learn