Becoming a DIY investor means making your investment decisions without having to pay for financial advice. This might seem a daunting prospect, but this article will help you by equipping you with the basics of portfolio construction, management and strategy.
Anyone with even a passing knowledge of the economic landscape of the last decade won’t need reminding that the value of investments can go down as well as up. One response to the possible volatility of financial markets would be to put all your cash in the bank as, in theory, this should be protected by a national compensation scheme.
An Individual Savings Account (ISA) is a flexible and tax-efficient vehicle. There are a number of ISA options available to investors. One of these is a £20,000 annual allowance for a cash ISA, which operates in much the same way as a typical savings account. Another is a stocks and shares ISA, which allows you to invest in a range of different asset classes and instruments.
When it comes to dividends, understanding the difference between dividend yield and dividend growth can be a key factor when deciding what companies to invest in. Dividend yield is calculated by dividing the annual dividend paid per individual share by the current share price
Before getting into the details of what information is available to research for certain types of investments, deciding exactly what type of investment is right for you should be the very first piece of research you do.
Everyone who invests in the stock market has to deal with some measure of volatility: the fact that their investments will go up as well as down. In times of global uncertainty, the possibility of volatility is higher than usual, meaning that many investors have had a rollercoaster ride.