3 ways to invest: Pick stocks, buy a fund, own a portfolio

Whether you’re looking to invest a small or large amount of money, there are many ways to go about it. Navigating the stock market can be a great way to give your bank balance a boost and save for the future. Here are three options to consider when investing. 

1. Pick your own stocks

The world of stocks and shares might seem daunting – particularly if you’re new to investing – but the basic principle is rather straightforward. Essentially, when you buy a stock you own a small part of the company you invest in and therefore the success (or failure) of that company can affect your overall wealth. If you decide to buy individual stocks you should do your research carefully to make sure you’re comfortable with the businesses you’re putting your faith in. Having all your eggs in one basket can be risky, so it may be wise to invest in a range of different companies.

2. Buy a fund

If you’ve got a low tolerance to volatility and want to spread your investment risk, buying a fund might be the right option for you. A fund basically pools together the money from many investors (usually individuals) and then the fund manager uses it to buy a broad range of assets such as cash, bonds, equities and property. It’s important to check all the fees and fund charges when looking at buying a fund as these can vary a lot and quite often aren’t easy to comprehend at first glance. 

3. Own a portfolio    

Building up a portfolio is another investment option. You can either do this yourself by careful selection and plenty of research, by taking advice from a financial advisor or management service or by using a discretionary investment management company. The latter will do all the hard work for you, creating a set of investments that match your financial profile and then managing it all for you. If you fancy investing but don’t really know where to start, this could be the ideal choice for you. Traditionally, you needed a vast amount of money to access the services of a discretionary wealth manager – as much as £250,000 in many instances – but there are a number of online companies that are now making this sophisticated kind of investment service available to people with as little as £1,000 to invest.

Nutmeg

Nutmeg is a UK-based online discretionary investment management company that will help you build a diverse stocks and shares portfolio based on your tolerance to risk. First, they suss out what kind of investor you are by asking you a series of online questions about the kind of risk you’re comfortable with, before investing your money in a way that suits you, adjusting your asset allocation as and when they deem necessary to help keep your investments on track. It’s as simple as that and you won’t have to do any of the hard graft. You can have a stocks and shares ISA with Nutmeg and they have recently launched a personal pension service.

Here’s what some of their customers have said about Nutmeg’s services…

- "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

- "Nutmeg have taken away the burden of managing my money. I feel safe. With Nutmeg, I have an expert investment team." — Fergus, chartered accountant

- "It's much more convenient, much more accessible, and much more transparent." — Andrew, company president

Bordier UK

Bordier UK is the UK branch of the Bordier & Cie Private Banking group and offers a top-quality discretionary management service for investments. It invests all its time and expertise managing portfolios for private families, pension funds, trusts, charities, offshore bonds, livery companies, small institutions, welfare committees and trustees and make day-to-day decisions on behalf of its clients based within an agreed framework and risk profile.

Here’s what some of its customers had to say:

- “A thorough service tailored to my individual needs”

- “Bordier UK listened to my financial goals and built a portfolio to match my circumstances and future dreams.”

- “Excellent customer service. Felt someone was with my every step of the way during my investment journey.”

7IM

7IM is an investment management business that helps individuals and their families manage their capital and reach their financial goals. It caters to people who want to manage their own portfolios as well as those who want investment decisions made for them. Its discretionary service revolves around listening to each client’s wants and needs before building up a tailored portfolio that matches the sort of investor they are.

Here’s what some of its customers had to say:

- “The platform is well constructed and the processes are easy to follow with the look and feel being modern and professional.”

- “The reports produced by 7IM to date have been well presented.”

- “Reliable and effective platform”.

- “Happy with the quality of service I obtained and quality of the system.”