HAVING A SAFETY NET IS ESSENTIAL

MAIKE CURRIE, investment director at Fidelity International. FOR first-timers it can feel daunting to take the plunge and invest. Investment is for the long term, so always ensure the money you plan to use isn’t what you will need in the immediate future.

Also, make sure you are ‘investment ready’. This means starting from a firm financial foundation. Whether it’s paying off debt, having a financial safety net in place or making sure you set yourself up before even starting is essential.

When deciding on where you want to invest, it’s best to be clear on your financial goals, and how long you need to get there.

For first-time investors, a fund that makes sense is the Fidelity Index World Fund. This gives investors access to some of the world’s biggest companies — names such as Google, Microsoft, Burberry and Disney.

It aims to closely follow the MSCI World Index, which tracks these companies and spreads your money across them. This keeps costs low and ensures your investment is well diversified.

It’s a great way to own a slice of the most exciting and fast-growing businesses, and spread your risk across a wide range of shares, while keeping costs low.

Once invested, keep in mind that long-term mantra. It can be tempting to get distracted by realtime online stock tickers and 24hour business news, but it’s important to ignore the daily updates. If you chop and change your investments too often, you are more likely to miss out on long-term benefits such as compounding. FIRST FUND TIP: Fidelity Index World Fund. Return on £10,000 after five years: £18,412.