How can I start investing?

Q: How can I start investing?

A: Getting started with investing can feel like the trickiest part of your investing journey. Before you begin, it’s worth checking that you’re ready. Investing is for the long term (at least five years), so make sure you’re in a financial position to commit your money and won’t need it for essentials or emergencies. Having some cash set aside - for example, in a rainy-day fund - can help you avoid dipping into investments at the wrong time. You can take our quick test to see if you’re ready to invest.

If you’re ready to invest, there are four questions you need to ask yourself:

1. What are you investing for?
2. Which account should you use?
3. What do you want from your investments?
4. What will you invest in?

Take them one at a time.

1. Be clear on your goals

Start with what you’re trying to achieve. You might be investing for retirement, a house deposit, your child’s future, or long-term wealth building. Investing is usually best suited to goals that are at least five years away. If you’ll need the money sooner, cash savings may be more appropriate. Being clear on your goal helps you decide how long you can invest for — and which account may suit you best.

2. Choose the right account

Once you’ve decided your goals, the next step is to choose an account to hold your investments. Some accounts are better suited for certain goals.

The account you use affects how your investments are taxed - and being tax-efficient can help more of your money stay invested over time.

A Stocks and Shares ISA allows you to invest up to £20,000 each tax year without paying UK income tax or Capital Gains Tax on any growth or income within the account.

If you’re looking for a flexible way to save for retirement, a SIPP (Self-Invested Personal Pension) allows you to invest for later life and receive tax relief on contributions, subject to limits. You can’t usually access a pension until the minimum pension age (currently 55, 57 from 2028). 

If you’ve already used up your yearly tax allowances, you can invest through an investment account. There’s no limit on how much you can invest, but tax may be payable on income or gains.

If you’re investing for a child, a Junior ISA or a Junior SIPP can be used to invest on their behalf. These accounts have their own rules and contribution limits.

3. Decide what you want from your investments

Do you want your money to grow over time? Or would you prefer investments that aim to provide a regular income? Some investments focus mainly on growth. Others aim to provide income, such as dividends from shares or interest from bonds. Many investors choose a mix of both.

What’s right for you will depend on your goals, timeframe and personal preferences.

4. Choose what to invest in

You’ve chosen an account. What’s next? It’s time to think about what you want to invest in. This is the part that can trip some people up. There is a large variety of investments to choose from, including funds, shares, investment trusts and exchange-traded funds (ETFs). Knowing the difference between them can help you get started.

• What is a share? If you buy a share, you buy a part of a company.
• What is a fund? A fund is made up of a number of companies' shares, so you get to invest in many companies at once. 
• What is an ETF (exchange-traded fund)? Exchange-traded funds contain a mix of shares or bonds that track a market, like the FTSE 100. They typically have lower costs than other types of funds.
• What are investment trusts? Investment trusts are similar to funds, except you buy and sell these on a stock exchange.

Let's help you get started

Whether you need a little or a lot of help, we’ve got the tools to help you pick your investments.

• Ready-made ISA - this allows you to open an ISA with a diversified fund in three steps
• Select 50 - a list of our favourite funds, selected by experts
• Investment Finder - a full list of the investments in our platform for you to pick and choose from

We’ve also developed a set of five guiding principles for good investing to help you make smarter investing decisions - whether you're just getting started or already on your way.

• Open a Fidelity Stocks and Shares ISA
• Open a Fidelity Self-Invested Personal Pension

Got a burning question you want to ask? Why not drop us a line. Click here to ask your question.

• Read: What is volatility? The basics
• Read: The tax benefits of an ISA
• Read: Your 2025/2026 tax allowances: the basics

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Please note that these guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals. Select 50 is not a personal recommendation to buy or sell a fund. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. The shares in the investment trusts are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. 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 one of Fidelity’s advisers or an authorised financial adviser of your choice. .