The principles of investing


By Personal Investment Team

30 June 2019

Goals, time horizon, risk and diversification are key elements to consider when investing.


Thinking about what you are saving for can help you decide how you invest and what you invest in, and means you are more likely to commit to regular saving. 


Time horizon

Investing is best when you think long-term. It means your investments may be able to recover any short-term losses, as well as benefit from compound returns. 


All investing has risks attached to any potential reward, but this can vary from investment to investment. You need to ensure you're happy with the risks involved with whatever you choose to invest in.


Owning different types of investments (perhaps through an investments fund) means if one doesn't perform well you could still receive the potential returns of others. 

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Risk warning

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest . Tax rules for ISAs may change in the future and their tax advantages depend on your individual circumstances.

Please note the information, data and any references in this article were accurate at the time of writing. Please check the date of the content if you’re looking for up to date investment commentary or tax-year related information.