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Investing for beginners

Thinking about how to invest but don't know where to start? Then our introduction to investing for beginners is the perfect place to launch your journey.

Important information - the value of investments can go down as well as up so you may not get back what you invest. Tax treatment depends on personal circumstances and all tax rules may change in the future. You cannot normally access your pension until age 55 (57 from 2028). Withdrawals from a Junior ISA will not be possible until the child reaches age 18. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.

Every investor starts somewhere

If you’re new to the world of investing, it can feel like there’s a lot to learn. To get you on the right track, our investing for beginners section will introduce you to what investing's about and how to invest with us. We'll also touch on some FAQs.

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Why should I invest?

People invest for all sorts of reasons, but one of the main reasons they invest is to make any spare money they might have work harder for them.

Money sitting in a bank is secure, but uncertain interest rates and inflation mean that it might not amount to much over time. While money that’s invested has the chance to potentially grow (of course it could fall in value too, but that's the risk of investing).

Is investing right for me?

  • You should only invest if you're in a position to do so. If you're in debt, not making the most of your pension, or don't feel comfortable investing without taking financial advice, you may not be ready to invest just yet.
  • It's also a good idea to have some savings set aside before investing. If your circumstances change it can be tempting to dip into your investments. And yet it's time that gives them the best chance to grow (we recommend you stay invested for at least five years), as markets rise and fall.

How can I invest?

We'd like to make your experience as easy as possible. Here are two simple steps that show you how to invest your money with us.

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Step 1: Choose an account

If you're ready to invest, the first thing you'll need to do is choose an account to hold your investments in. It’s important to pick one that’s right for you. So, you’ll need to think carefully about your personal situation and what you’re saving for.

  • Stocks and Shares ISA - a tax-efficient way to invest up to £20,000 per year.
  • SIPP (Self-Invested Personal Pension) - a flexible way to save for retirement with significant tax benefits.
  • Junior accounts - invest for your child's future with a Junior ISA or Junior SIPP.
  • Investment account - for anyone who’s already used up their yearly tax allowances, there’s our investment account. This has no limits on how much you can invest.
See which of our accounts is right for you
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Step 2: Decide how to invest

Once you know what account you need, it's time to think about what you want to invest in. We have over 6,000 investments to choose from, including funds, shares, investment trusts and exchange-traded funds (ETFs). 

  • What is a share? If you buy a share, you buy a part of a company (that has a variable number of units to sell).    
  • What is a fund? A fund is made up of a number of companies' shares, so you get to invest in many companies at once. 
  • What is an ETF (exchange-traded fund)? Exchange-traded funds contain a mix of shares or bonds that track a market, like the FTSE 100. They typically have lower costs than other types of funds.
  • What are investment trusts? Investment trusts are similar to funds, except you buy and sell these on a stock exchange.
  • Any other considerations? Think about inflation. Inflation is the rising cost of living over time. To give you an example, it’s very unlikely the amount you pay for a coffee now will be the same in ten years’ time. Inflation typically reduces the buying power of your cash in the long term. Keep in mind that if you decide to save in a Self-Invested Personal Pension (SIPP), the value of your pension pot may be at greater risk of being eroded by inflation if it holds only cash, or mainly cash.

Let's help you get started

You can select your investments yourself. Or, if this feels a bit daunting to begin with, these three options can help you open an account and start investing.

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Easy Invest

A simple, low-cost fund

One fund holding shares from some of the world’s biggest companies. Available only for an ISA.

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Fidelity Select 50 Balanced Fund

Expert fund picks in one investment

One investment comprising a selection of our favourite funds, investment trusts and exchange-traded funds - predominantly from our Select 50 list.

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Show me a few ideas

We’ll give you a few fund options, based on what’s important to you. Available for all accounts.

If you would like to see everything we offer, you can use our Investment Finder tool to search and filter the thousands of investments on offer.  Search for investments

Important information - please note that these guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser.  You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.

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Principles for good investing

We’ve developed a set of five guiding principles for good investing so you have the know-how to make smarter investing decisions, whether you're just getting started or are well on your way.

Read our five investing principles

Ask us a question

Each month we’ll pick up on your most popular questions and answer them. We’re keen to hear about what matters to you, so do drop us a line. 

FAQs

What is inflation?
What is an investment?
What can I invest money in?
What is the FTSE 100?
What is the stock market and how does it work?