The principles of investing

Goals

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. 

Risk

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.

Diversification

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.