The beginning of the new year has always been considered a good time to start planning a new life, new goals and for someone also new investment strategy. In 2022 more and more people decide to start an investment journey in order to see their money grow over time and to get a financial return.

If you’re planning to start investing your capital, having a good financial plan is essential. By having your economic situation and your goals under control you will have more possibilities to ensure a more stable financial future. Even though investing money is considered a good way to have a financial return, you should never forget about the market’s volatility.

Your investments might also have a bad performance and you might get back less than you invested. That’s another good reason to set a good strategy for all of your investments. The first step to creating a good plan is to identify your future, life, and economic ambitions and how much risk you are willing to take.

Everyone has different views and goals; you may want to heighten the savings rate in your pension fund or save money for your family or even for yourself or maybe you simply want to boost your investment portfolio. If you’re planning to start a new investment journey, here’s a list of all the types of investments available in the UK in 2022. For a better comprehension of this matter, you can also check this page.

Types of investments available in the UK

Let’s have a closer look at the most common types of investments currently available in the UK.

1. Stocks are the most popular kind of investment in the UK. They can also be called shares or equities. Your goal when you buy a stock is to see the price grow in time so you will be able to sell it for a higher price in the future. Just like any other kind of investment, the price might also go down and you might end up getting less.
2. Bonds are another kind of investment that is growing in popularity. When you purchase this kind of asset, you’re basically lending money to a society with the goal to get a financial return. Another smart way to start your investment journey is to include your retirement plans in your portfolio. This way you’ll basically be investing in your life after your working years.
3. Commodities are another asset that investors usually include in their portfolios. When you make the purchase of commodities you’re basically investing in physical products like metals or energy with the goal to have a financial return.

What are ETFs?

ETF, which are also called Exchange Traded Funds, is a type of investment fund that grants a great diversification of advantages. Exchange-Traded Funds have been purposely designed to combine the characteristics of mutual funds and the ease of management and exchange of stocks.

Basically, EFT is a collection of investments (like bonds, shares, or stocks) thanks to which the account holder has the chance to invest in many different areas all at once, while also granting lower sums than other kinds of accounts.

Just as it happens with any other kind of investment, EFTs investments are risky and you might end up getting less than what you deposited. Even though you’re investing to see your money grow, the market’s constant swings are really unpredictable and they might have a negative impact on your investments’ performance.

That’s why when you start your investment journey seeking financial advice might be a really good idea. This way you’ll be entrusting your financial situation to an expert, whose skills and experiences will help you figure out the best way to plan all your moves.

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