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Investing in the UK

Explore the UK stock market as part of a diversified investment portfolio.

The UK stock market is home to some big British brands - many of which are also global businesses that serve customers around the world. By investing in the UK, you’re also taking part in a market that can help businesses grow and support the wider economy.

So, what could investing in the UK mean for you and your money? What are the risks you need to think about? And how can you explore your options if you decide it’s right for you?

Why invest in the UK

Here are some of the reasons you might consider investing in the UK stock market.

Access to global businesses

Investing in the UK doesn’t mean investing in the UK economy alone. Many UK-listed companies do business all around the world - so you gain exposure to businesses serving customers across different countries.

Potential for income

If you’re looking for investments that provide income as well as the potential to grow over time, the UK market may be worth exploring. Many UK-listed companies pay dividends - payments that companies may make to you from their profits. However, dividends aren’t guaranteed and can be reduced or stopped at any time.

A mix of industries

Investing in the UK can give you access to businesses across healthcare, financial services, consumer goods, energy, defence, industrials and technology. This will help you spread your money rather than relying on one area of the economy.

Prices that may look attractive

At the moment, some UK shares may look cheaper when compared with similar companies in other markets. But a lower price doesn’t always mean better value. Share prices can stay low or fall further, so it’s important to look at the wider picture.

How could the UK fit in your portfolio?

Investing in the UK doesn’t mean choosing between the UK and other markets. It’s good to hold a mix of investments as part of a diversified portfolio.

Spreading your investments across different countries, industries and assets can help you avoid relying heavily on one part of the market. Read more about diversification.

What could current market conditions mean for you? Investment Director Tom Stevenson shares his views on the UK stock market.

How to invest in the UK stock market

There’s more than one way to invest in the UK. You could buy shares of individual companies or choose a fund that invests across a range of companies for you. We have a few helpful tools you can use to explore and compare your options, and filter your search to find investments focused on the UK.

Tip: You may need to select ‘View more filters’ to see the ‘Geographical regions’ drop-down menu.

Select 50

Not sure where to start?

Browse a shortlist of our favourite funds from across the platform, selected by experts.

Investment Finder

Know what you’re looking for?

Search and compare thousands of investments, then use the filters to focus on the UK or explore other regions.

Haven’t opened an account with us yet? Explore our account options

Important: Investing over 5+ years can increase your chances of a better return than cash savings. But, unlike cash, investing isn’t risk-free so you may get back less money than you invest. This information and our tools are not a personal recommendation for a specific investment. You must ensure that the fund you choose is suitable for your individual circumstances and remains so over time. Seek advice if you're unsure.

More on investing in the UK

Here are some great articles and videos that we update throughout the year to help you make decisions that are right for you.

Read: UK stock market investing: 5 British ISA fund ideas

Read: UK stock market - 7 simple questions answered

Watch: Why investors are returning to the UK

Read: What is the FTSE 100? The basics

Read: What is the FTSE 250? The basics

FAQs

It usually means putting your money into companies listed on UK stock exchanges.

You could buy shares in individual companies or choose a fund that invests in several UK businesses for you. These may include well-known British brands as well as global companies that generate revenue all around the world.

You may be drawn to the range of businesses available, the potential for dividend income or prices that look attractive when compared with other markets. Holding UK investments alongside investments from other countries may also help you spread your risk.

You can hold your investments in a Stocks and Shares ISA, Self-Invested Personal Pension (SIPP) or a general Investment Account. If you’re investing for a child, you can use a Junior ISA or Junior SIPP.

Once you’ve explored your options and decided which account suits your needs, you can search for UK funds using Fidelity’s Investment Finder. You can also explore Select 50, a list of our favourite funds, selected by experts.

There’s no straight answer to this, and it’s difficult to predict the best time to invest.

What matters more is whether UK investments fit your overall financial goals, how long you plan to invest, how comfortable you are with taking risks and what you already hold.

A UK fund mainly invests in companies listed in the UK, while a global fund can invest in companies across a range of countries and regions.

You don't necessarily have to choose one over the other. Holding both can help diversify your investments by spreading your money across a broader range of companies, markets, and economies.

Home bias is when you invest more heavily in your own country, often because its companies feel familiar.

There’s nothing wrong with investing close to home. But if too much of your money is tied to one market, you may be taking more risk than you realise.

Like all investments, UK investments can rise and fall in value, and you may get back less than you invest.

How much risk you take will depend on the investments you choose. Spreading your money across different companies, sectors and markets can help, but it won’t protect you from every loss.

Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document or Product Summary document which contains important information about the fund.

This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.