Investing is when you use your money to buy assets that, hopefully, will increase in value over time or provide income in the form of dividends or capital gains. These assets can be ‘real’ (like property) or ‘financial’ in nature such as shares in companies, bonds issued by companies or governments and cash investments like term deposits. This link theinvestorscentre.co.uk
The right way to invest for you will depend on a range of factors, such as how much money you have saved, your career and other financial priorities and how comfortable you are with risk. However, one thing that is true of all investments is that there is always some degree of risk involved and you may end up with less money than you started with.
Investing 101: A Beginner’s Guide to Building Wealth
You can choose to invest yourself by opening a DIY investment account or you can have your money managed for you by a professional investment manager. If you’re going to do it yourself, it’s important to understand the charges and taxes associated with investing, as well as knowing a bit about how different assets perform. You also need to consider your time horizon, as the longer you have invested, the greater the benefits from compounding.