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Learn about investing

Important information: please keep in mind that the value of investments can go down as well as up so you may get back less than you invest. 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 an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.

What are the basics ?

Before you start investing you’ll need an account to hold investments in.

There are many different types of investment you can put your money into, with the intention of seeing their value (and your money) grow over time. Each investment type has its own characteristics, risks and benefits.   

At Fidelity we offer thousands of funds, shares, exchange-traded funds (ETFs) and investment trusts.

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What sort of account can you open?

With Invest@Work you can open a Stocks and Shares ISA, or an Investment Account.

A Stocks and Shares ISA is a tax-efficient way to save and pay no income tax or capital gains tax on returns. The ISA allowance for the 2019/20 tax year is £20,000, and you have until 5 April 2020 to use it.

An Investment Account allows you to invest as much as you like (subject to a minimum level), however it does not offer the same tax-efficient benefits as an ISA.

About risk and return

Risk is about balancing the chance of a loss with the benefit of a higher return over time. Investing tends to work better over the longer term (through the ups and downs of markets) so you should aim to invest for 5 years or more.

Individual equities (shares) usually carry a higher level of investment risk, which often means that the potential for growth is greater, but there’s also a greater possibility that your investment might fall.

Cash funds, on the other hand tend to carry lower risk, but with that comes lower potential returns.

Your tolerance for risk will help you decide which investments to choose.

In setting up your Invest@Work account we will provide you with a small range of investment options to consider, at different levels of risk. These might be helpful to get you started. When your account is open, there are more tools and guidance to help you.

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What is a fund ?

Funds are a pool of money which you invest into along with other investors. That money is then collectively invested by a fund manager using their expertise.

This allows you to spread your money across several different investments, without the stress and difficulty of choosing and managing them.

The fund manager will take a fee for providing this service, usually something like 75p a year for every £100 you put into the fund.

What is share dealing?

Share dealing is when you buy or sell shares in a public limited company.

When you buy a share, you become one of the company’s owners and you may be entitled to a share of any profits it makes.

If the company does well, your shares may go up in value because more people want to have a stake in the company. But if the company doesn’t do well, the value of your shares may fall.

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What are ETFs and Investment Trusts?

Exchange-traded funds (ETFs) are an increasingly popular way to invest. They track the performance of specific markets or certain types of investments, such as companies that pay a high level of dividend income.

Investment trusts work in a similar way to funds, you invest in the trust and the trust invests in other investments. Where they differ is that investment trusts are publicly listed companies traded on the stock exchange. If you buy shares in one, you become a shareholder, giving you a vote on how it’s run.

Ready to start investing?

First, you’ll need to open your Stocks & Shares ISA or Investment Account, then you can choose how much you’d like to save each month and where to invest your savings. Read more about how it works.

New to Fidelity Personal Investing?

Open a Stocks and Shares ISA or an Investment Account and start saving.

Already have a Fidelity Personal Investing account?

Log in now to set up Invest@Work on an existing Stocks and Shares ISA or Investment Account, or to open a new one.

Need more information?

About Invest@Work

Read an overview on what Invest@Work is and how it can help you reach your savings goals.

Which account is right for you

Learn the difference between the accounts you can open and find out which one is right for you.