Investments FAQ

We know that there is a broad range of investment options on the market, which can become confusing, so to help you navigate them we’ve compiled some of the most frequently asked investment questions.  

To find out more about investing, or if you want to speak to an expert about your specific circumstances, contact a member of the Navigate Wealth team on 0345 340 9690 or use our submission form.

What is an investment?

An investment is a way of putting money away, with the hope that the amount will increase over time. For most people, investments are made in the stock market (buying shares in companies) but some of the other most common investments include: 

  • Corporate Bonds
  • Investment Funds
  • Units Trusts or OEICs
  • Government bonds (gilts) 
  • Property (commercial or residential)

How is an investment different to saving?

Investing is more risky than saving. With savings, you have the security of earning steady returns - through interest payments - but with investments, you take a risk on whether you make a profit or loss. A person should only invest if they are prepared to take the risk that their investments could go down, as well as up, in value.

What is a stocks and shares ISA?

Stocks and shares individual saving accounts (ISAs) are also known as equity ISAs. They are a tax-efficient way of investing in a range of stock market related assets and offer the possibility of higher returns than a cash ISA.

How do stock markets work?

The stock market is where different company shares (very small percentages of ownership) are listed, sold and bought. Companies sell shares in a bid to boost funds available to invest, by offering investors the chance to back them financially. The shareholder then gains returns on the business profits (via dividend and changes in the share value) - but if the company makes losses, the shareholder potentially will as well. 

Share prices continually rise and fall. This can be dictated by a number of factors, including the company’s financial performance and the general economic position in any one country or globally.

What investment is best for me?

The best investment for an individual depends on their personal finances and circumstances. Choosing the right product is a crucial part of creating a robust investment plan so it’s important that the investor seeks quality financial advice. 

Navigate Wealth’s experienced team will complete an extensive review of your finances and circumstances before making any investment recommendations. To discuss your personal situation, contact the team on 0345 340 9690 or use our submission form.

How much should I invest?

There is no recommended figure, but it is a common misconception that you should always invest large sums of money. If you are new to investments, as a general rule, you should start by only investing what you can afford to lose. 

Investors who consistently invest small sums can be just as successful than those who invest lump sums. These smaller investments can be gradually increased to larger sums over time.

How long will it take for me to profit from my investment?

There is no guarantee that you will make a profit when you make an investment, but it is recommended that you invest for as long a period of time as possible to increase your chances as much as possible. 

For example, with stocks and shares investments, a minimum five year investment period should allow enough time for a company to recover from any dips in profits/share value.

Further questions?

If you have more questions about pensions and retirement planning, or if you want to speak to an expert about your specific circumstances, contact a member of the Navigate Wealth team on 0345 340 9690 or use our submission form.

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