INVESTING: WHERE DO I START?

INVESTING: WHERE DO I START?

CHAPTER 1

INVESTING:
WHERE DO I START?

Welcome to our Principles of 
Investment e-book which will help you 
understand the basics of investing 
and arm you with introductory 
knowledge to aid discussions with 
your financial adviser.
Successful investing is about simple 
principles and careful planning; 
not gambling.

Speak to a financial adviser
who will be able to recommend investments 
that are suitable for your individual needs 
and that best fit your specific risk profile.

If you’re thinking about investing for the first 
time, it may seem a rather daunting step. 
You might not be sure what the difference 
is between a share, a bond and a fund, let 
alone which one could be right for you. And 
the way that some people talk about the 
financial markets can make them sound more 
like a casino than a place where you would 
want to put your life savings.
Yet for most of us, investing – as opposed 
to saving our cash in a bank – is a crucial 
part of our financial planning. It offers the 
chance of higher returns, giving us a better 
chance of building up wealth to fund our long-

term goals.
There are certainly risks associated with 
investing, but those can be reduced if you 
invest in a certain way. Learning how to 
do this is the key to making the best of the 
opportunities available.
PREPARING TO INVEST
Begin by making sure that your finances are 
on a stable footing, starting with a review of 
your current financial position. This should 
include looking at your existing income along 
with any regular expenses or outgoings, and 
debts which you might have. It doesn’t usually 
make sense to invest if you have high-interest 
debts such as credit cards to pay off. That’s 
because the interest rate you’re paying may 
be higher than the returns you’re likely to 
earn from investing. In other words, you may 
be better off putting any spare cash towards 
paying off your debts.

INVESTING: WHERE DO I START?