What you need to give some thought to is what those objectives are. This is an area in which compromise and self understanding are essential.

Everyone wants investments which are safe, in the sense that they cannot fall, and which offer high returns. This ideal combination is not available. Beware anyone who claims otherwise.

It is important that you understand what your investment aims are.

In general terms the longer that your investment is to be left alone, (e.g. for retirement), the higher level of short term risk that is acceptable. If however the money is needed in full in the near future (e.g. for a house deposit) then short-term safety is essential.

In short, we will help you determine an investment strategy appropriate for your needs, and using the investments best suited to your investment attitude and tax position.

Types of Investment

There are many types of investment, each of which has a different structure, different tax treatment and investor implications.
Some of them are:-

Stocks & Shares (Equities)
ISAs
National Savings
Deposit accounts
Fixed Interest
Insurance bonds
PEPs
Property
Endowments
OEICS
Annuities
Unit trusts
Investment trusts
Zeros
Capital Shares
Income Shares

It is important that you understand the potential risks and returns associated with each investment.

For example cash under the bed - you lose value through inflation - a guaranteed way to lose money. Deposit accounts at the bank - after tax they will often return less than inflation. There is also the (small but real) risk of a bank collapse.

At the other extreme - investing in warrants can lose your entire investment in days, or return a staggering profit.

The essence of understanding risk is to achieve the right mix of the two key elements:-

How long is the investment for?
Is this money to be oriented towards maximising profits, or towards avoiding loss?

Each part of your money might have a different answer. For example the money in your pension fund is for the long term and aimed at maximising profits. However with money you may have set aside as the deposit on a house, ensuring that there is no significant risk to capital is more important than maximising profits. It is also likely to be invested on a much shorter timescale - months or a couple of years.

One area of confusion in investments is to confuse the investment (its likely risk reward profile and behaviour) with the packaging (which is typically an investment product designed around various tax laws and legal issues).

For example an ISA (Individual Savings Account) is packaging. The fact that an investment is in an ISA tells you nothing about the risks or rewards you might run by buying it. You need to ensure that you understand how the ISA is invested.

In short, we will help you determine an investment strategy appropriate for your needs, and using the investments best suited to your investment attitude and tax position.