CULTURE STOCK
INVESTING IN THE IS NOT MARKET JUST A PURSUIT OF THE WEALTHY – YOU COULD GET STARTED WITH AS LITTLE AS £20. TRICIA PHILLIPS REPORTS
ONE in three people think they’re too poor to invest in shares, research reveals. A fear of losing money is leaving many too scared to invest as they don’t believe they know enough about the stock market – or even how it works.
The study by Halifax Share Dealing shows a gender gap in attitudes to investing as two in five women say they’re not in a financial position to invest, compared to one in four men.
Philippa Clarke, investment expert at Halifax Share Dealing, says: “Responsibly investing in the stock market can be a great way to complement other financial decisions to help manage people’s household budget.
“The stock market being the sole pursuit of the wealthy is an outdated myth, as making small, regular investments can build experience and grow a portfolio over time.
“People can invest as much or as little as they’re comfortable with, whether it’s £20 or £2,000, and adjust it over time to suit circumstances.”
On average people spend an estimated five hours investigating and researching a company’s stock performance before buying shares – which is a lot longer than the average research time for a credit card at two hours and 53 minutes.
It can seem daunting when starting out in investment due to the risks involved. But with continued pathetic rates on savings accounts it can be a way to help our hardearned cash work harder for us.
It just needs to be done with care and at a rate you can afford, without putting pressure on your finances.
It is not going to be a quick fix, you need to be in it for the longer term and be able to keep your head when the markets dip.
But when it comes down to it, most of us are already investors as pension savings are invested in a range of assets including the stock market.
MAKE SURE...
■ You have your emergency savings fund sorted before you consider investing – at least three months of your net income to fall back on.
■ You know what type of investor you are... saving for the future, wanting to generate additional income or maybe you want to grow or supplement your pension.
■ You know what you are looking for – understand how much risk you’re willing to take and consider all options, from highly diverse funds to more stable bonds to get the investment that’s right for you.
■ You’re not looking for a quick fix. Be prepared to be patient and play the long game, often around five to 10 years can be a good time period to see results. Have an idea how long you plan to invest for.
■ You’re not put off by investment jargon such as bear market (when share prices fall more than 20% over a sustained period) or bull market (when prices rise more than 20%).
Check out Halifax’s Jargon Buster at tinyurl.com/w2e3svxr
■ You know that investments can go down as well as up.
Making small, regular investments can build experience and grow a portfolio over time
Philippa Clarke, investment expert at Halifax Share Dealing