Top tips for first-time investors.

Whatever your savings goals may be, it’s important that your money works as hard as possible for you. If you are saving for the medium to long term, you might want to consider investing some of your money. You should invest in a way that’s right for you without taking unacceptable risks. See our guide below for some top tips for first-time investors:

What are investments?
There are many different types of investments available including stocks and shares and property and bonds. You invest money in these types of assets to get a profitable return, however by investing you can also incur losses. Contrary to common belief you do not have to have a large lump sum to start investing, some products offer a regular saving option allowing you to invest smaller amounts on a monthly basis.

Why should I think about investing?
We all have different savings goals and these can change depending on what life stage you are at. If you are saving for the longer term and don’t need access to your money, investing in stocks and shares or property and bonds could be an alternative to a cash savings account.

When should I start investing?
Nobody can predict the perfect time in the market for you to invest your money, however you should make sure that you have enough money which you can access easily to cover your everyday expenses and ensure you have an emergency fund that can easily be accessible before you consider investing. Before you invest make sure that you are happy that, in exchange for potentially better returns, you understand any associated risks.

What about the risks?
Whenever you invest money you will always be exposed to some element of risk. It’s very important to think about how much risk you feel comfortable with and that you can afford to take risks before making your investment. The more risk you take generally the bigger the potential return on your investment, this is because more risky investments are generally more volatile which means their value can rise and fall rapidly.

Think about your personal circumstances
It is important to understand your personal circumstances. If you lose money on your investment, consider how this would affect your standard of living. If a potential loss could affect your lifestyle you may want to think about a more cautious investment where exposure to losses can be managed more effectively.

Do your homework
When you find an investment product you may be interested in, make sure that you do your research. Check out independent financial websites and press for information. Ensure that you are happy with where and how your money will be invested and check the risk level of the investment to make sure you are comfortable with it. If you have any doubts consider contacting a qualified Financial Adviser.

Police Mutual offer a range of savings and investments products. Whether you want to save regularly or invest a larger amount our products could help meet your needs. To find out more about our range click here or call the team on 01543 441 630

Police Mutual Assurance Society Limited is an incorporated friendly society. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS.