How to buy investments



Buying investments can seem daunting if you haven’t done it before. Follow our step-by-step guide.

· Do you need help?
· Checklist for buying investments

Do you need help?

Have you decided what type of investment you want? Are you reasonably sure of what investment or product features you are looking for? If not, consider going to a financial adviser. The adviser will help you with these choices and with the buying process.

Checklist for buying investments

Are you intending to buy individual shares? You need to use a share dealing service and the cheapest tend to be online. You can find out about different types of service and search for a provider by:

· Visiting the Wealth Management Association website.

· Using the Investors Chronicle stockbroker comparison tool and table.

· Are you looking at investment funds? Use the Investment Association website to find out more about the types of funds available and where to go for more information. To compare these and other types of funds in more detail, you could look at specialist sites, such as Trustnet and Morningstar.

Where to buy investments

· Decide how you want to buy – for example, going direct to the provider, through a fund supermarket or through a broker. Usually you will buy online or by phone. Follow the link below to check out your options.

· Before you buy, consult the Financial Services Register run by the Financial Conduct Authority (FCA) to check the firm you decide to buy through is authorized to provide the types of investment or service that you’re interested in. If a firm isn’t authorized, report it to the FCA or police and do not do business with it.

· Read the Key Facts or Key Investor Information document for the investment before you buy. These documents set out important information that the provider must tell you (not required for single holdings of shares). If there is anything you do not understand, contact the provider for further details. If you are still unsure, you may want to consult a financial adviser.

· Check what fees and charges you will have to pay. Charges for the same product may vary according to how you buy or which broker you choose. So compare the cost of buying through different routes and firms.

Understanding investment fees

Check how you will be able to manage and keep track of your investment. For example, will you be sent regular statements? Will you have an online account? What’s the procedure for cashing in your investment later? How will you and the provider normally communicate – by email, online, phone, post?

Get more informed about investing

· Be suspicious if an investment seems too good to be true. Unless you can check what you are being told against an independent, trusted source, report the firm selling it to the FCA and walk away.

· Don’t be swayed by offers that require you to make up your mind today. It’s better to take your time to consider a deal properly even if it does cost a little more rather than be rushed into an expensive mistake or a scam.

A beginner’s guide to scams

· If the firm you are dealing with puts pressure on you in any way, don’t do business with them. They may want you to take a quick decision without time to consider whether the product is right for you. Or they might pressure you to buy a different type of product to the one you wanted, or invest more than you intended. Instead, use a different firm that you’ve checked is authorised by the FCA. Or, get independent advice.

High risk investment products

Beware toxic savings and investment products

· Once you have decided to buy, follow the firm’s instructions for going ahead with the deal. You will probably have to provide evidence of your identity and address - even if you have bought online or by phone, you may need to do this by post or in person at a local branch.

· Carefully read the documents you get confirming your investment. Are the details correct? Do you have a cooling-off period? If you do have a cooling-off period, this is a chance to reconsider your investment and change your mind if you want to

Popular posts from this blog

Becoming More Savvy in Personal Finance

Image
With the year 2017’s entry, we find ourselves pondering upon what we attained in 2016 and, more importantly, what we need to do in 2017 in preparation for the years ahead of us. Breaking it down into its simplest ideas, our efforts must be toward achieving three essential things: Becoming healthier, wiser and wealthier. The steps needed to build our wealth are as follows: Separate insurance from investment Majority of people often put off planning their tax and investment requirements until the last few weeks of the financial year. And usually, they try to simplify their difficult problems by getting insurance. They may end up saving on their taxes; however, they can benefit more from wiser investing . Besides, the common endowment insurance policy provides minimal income and will provide the highest potential for creating enduring wealth. Moreover, the death benefits you get from insurance are not sufficient to address long-term financial needs of your dependents. The bette
Read more

How do the Wealthy Invest?

Image
If we knew how the wealthy invest, we can begin setting the stage for our own financial success . Who else can teach us the prudent and secure steps toward increasing our chances of building wealth than the rich themselves who constantly ponder ways to do so? In spite of the fact that the wealthy also make significant mistakes that affect their gains, they remain on top of their game and bring in money, making the envy of many people. That is no accident. With diligence and the ability to get the proper financial advice, they have the knack for succeeding in enhancing their assets. A recent Trust survey covering wealthy individuals revealed that one-third of respondents obtained their fortune by investing. Their secret, of course, lies in the right investment vehicles to choose. How can we imitate the wealthy and succeed as well? Here are some tips: 1. Portfolio diversification. Successful wealthy investors have learned that betting on single stocks, such as Tesla Motors
Read more

Learning How to Invest (Part 2)

Planning and setting objectives Investing is a long-term process, like planning a long vacation. Ask yourself these questions before you embark on this endeavor: • What is your destination? (What financial goals do you have?) • How long is your vacation? (What is your time frame in investing?) • What should you bring along? (What investments forms will you choose?) • How much gas do you need to use? (How much will you invest to achieve your goals? How much can you invest a regular plan?) • Do you have stopovers on the way? (What short-term financial expenses do you have?) • How long is your vacation? (Will you have to retire using your investment?) • If you run out of gas because you frequently stop to rest and drive through the night, you are bound to spoil your vacation. So it is if you do not save enough money, if you invest haphazardly or fail to invest at all. Answer these questions judiciously and honestly. Mud
Read more