How to invest in stocks and shares

When it comes to making investments and boosting your income, learning how to buy shares, or jak kupic Akcje, as well as investing in this particular market is often considered to be the way forward – but what does this entail? Well, put simply, when you buy a share you gain part ownership of that particular company. So, if you buy multiple stocks and shares you can essential own a tiny part of multiple companies which in turn reduces your investment risk as you do not solely rely on the success or failure of individual organisations.

Any return you get from shares comes from share price growth or from dividends – payments out of the company’s profits and for many people investing this way can give better returns than putting money into a savings account. Why? Well, it has become increasingly hard over recent years to earn a real rate of return on any bank or building society savings product meaning placing money into a high-yielding collection of shares has become a more attractive option.

One of the most common way to get your money into stocks and shares these days is to use an online broker and to put your money into a range of investments such as unit trusts, government bonds, shares in individual companies and such like. Stocks and shares ISAs, for instance, offer many tax benefits as you pay no capital gains on returns for your investments and there’s a ten per cent tax gap on any share dividends you might receive.

While the value of your money can go up as well as down, you can enjoy great returns. Being prepared for fluctuation and choosing the right broker is of paramount importance so let’s take a closer look at investment management companies who handle stocks and shares.

Nutmeg

If you want to invest but you don’t have the time or inclination to do it yourself, a website called Nutmeg might be for you. With this multi award-winning investment management company you only need to have 1,000 to invest but you will still get a completely professional and discretionary investment service – that means the Nutmeg team manage your portfolio and make all the decisions investment decisions on your behalf.

Essentially, you tell Nutmeg about your attitude to risk and how long you’re investing for and they will then build an investment portfolio that is tailored to you. Nutmeg is also aimed at people who don’t have massive wealth – you can start with 1,000 -so you won’t be surprised to learn that you can also place your Nutmeg investments in a stocks and shares ISA wrapper. They also have a personal pension service coming soon.

So how is your money invested? Well, Nutmeg invests your money in a number of stocks, shares, commodities and bonds. Much of this investing is done via exchange traded funds (ETFs) which are basically a very cost-effective way to invest in a particular asset class, so you can potentially benefit from better net returns. So you could buy an ETF that is invested in London’s FTSE 100 index, or an ETF that is invested in physical gold. A Nutmeg portfolio usually holds around 10 ETFs.

Nutmeg has a team of investment experts who will make the investment decisions for you – these will then be applied to your portfolio depending on your profile. You can create a dummy portfolio on the Nutmeg site to see how it works – you don’t have to invest any cash.

Here are some of Nutmeg’s customer reviews:

“Nutmeg have taken away the burden of managing my money. I feel safe. With Nutmeg, I have an expert investment team.” – Fergus, chartered accountant

“They give me absolute trust that they’re on top of my finances – as much as I would be if I was managing it.” – Helen, managing director

“Nutmeg really called out to me. I felt it could offer a better return on my investment, in a way that suited me.” – Darren, business consultant

“I’d given up ever findingprofessional support I could have faith in again until I came across Nutmeg.” – Nilmini, senior manager

AJ Bell Youinvest:

AJ Bell Youinvest is a low cost, award-winning platform for the DIY investor that provides a hassle-free way to both take control of your finances and invest. They also have a discretionary arm to their business and are an established ‘old guard’ in the investment industry with many years experience behind them.

AJ Bell has long been known as one of the best companies for people with 50,000 or more to invest, particularly because they have highly competitive fees for clients in this wealth bracket. Justin Modray at Candid Money has said that someone with 100,000 invested in a mainstream fund charging 0.75% will pay between 1,100 and 1,200 at Hargreaves Lansdown, but just 830 at Interactive Investor, 840 at Alliance Trust Savings and 950 at AJ Bell.

Here’s what a selection of people have been saying about their services:

• “AJ Bell Youinvest provide share dealing accounts that will give you access to a range of investment opportunities online. You can use it to manage your investment ISA or SIPP, and control your investment portfolio as well. AJ Bell Youinvest offer a range of funds you can choose from, and you can use your account anytime 24 hours a day.”
• “AJ Bell Youinvest is one of the cheapest companies to trade shares in the UK. It is also good as you can trade in foreign markets, though costs vary and the staff aren’t always sure of the costs. The website is easy to use and secure, though the android app seems a little less secure. It does take a while for withdrawn funds to reach your account though I’m still happy with the service.”
• “The platform is very user-friendly and simple to use. Over the phone service is also spot on and puts your mind at ease.”
• “All questions have been answered promptly and politely. Can’t fault the customer service.”
• “Cheap, easy to use. Very quick service.”

JP Morgan

JPMorgan Chase & Co. is an American multinational banking and financial services holding company. It’s one of the oldest, largest and best-known financial companies in the world with a legacy dating back to 1799.

The company is centred around understand you and your savings/investment goals. Whether you’re new to the world of investing or need to review your strategies, JP Morgan Chase & Co. will work with you to ensure you make sensible and well-informed financial decisions. A financial advisor will help priorities your goals and develop and appropriate approach depending on your individual circumstances and situation. In short, no two customers are the same.

As well as banking and investment expertise you’ll also receive personal, ongoing guidance, access to a broad range of financial services and a customised financial analysis to help plan for your future.

Again, they are a particularly popular choice if you have 100,000 or more to invest and prefer to have the luxury of face-to-face meetings with your wealth manager where you can discuss different investment scenarios before committing to a particular decision.