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Is now a good time to invest in a fund? Where can I get guidance?

24 June 2022

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Question by Danny

Is now a good time to invest in a fund?

I'm a novice at investing direct in companies, is this a better way to invest? Where can I get guidance?


Answered by Oliver McDonald

Hi Danny,

Thank you for your question.

When you're starting out investing, there are several things to think about.

1. How long? Investing money into stock markets is a long-term game. You should look to invest money for 5 years minimum. Any shorter and potentially you haven't given the funds enough time to grow.

2. Risk - This refers to volatility risk. How much do your funds increase and decrease in any one year? Generally, the US stock market, which makes up 60% of global markets, will move 14% up/down in an average year.

3. Is now a good time to invest? The best time to invest was 20 years ago. the second-best time to invest now. Don't think about when to invest, other than when you have the funds and you're ready to commit long-term. You should never try to time the markets. time IN the markets, not TIMING the markets. That said, now is a far better time to invest than 6 months ago, as markets are a lot lower.

4. Regular contributions - If you can save regularly this will be beneficial.

5. Funds - Unless you have a lot of time and expertise, you're better off investing in funds rather than picking stocks. A well-diversified global equity fund is generally a good place to start.

Check out our blog at www.engagewm.co.uk/blog for loads of great content. Our latest blog below provides some tips on successful investing:
https://engagewm.co.uk/successful-investing-3-simple-steps-you-can-follow-to-achieve-investment-success/
There is also lots of guidance on this website - boringmoney.co.uk

For podcasts, try Maven Money podcast - incredibly useful for ongoing guidance and reassurance

Also, have a look at Meaningful Money - podcast and youtube videos. They will certainly have a video on first-time investing.

I hope that helps for now.

Oliver McDonald

Answered by

Oliver McDonald

Director & Independent Financial Adviser

I have worked in financial services for 15 years gaining extensive experience in financial planning. I am a people person. You will rarely find me explaining complex spreadsheets or using jargon. I keep my conversations at a high level and realised early on that financial planning is all about helping my clients achieve the lifestyle they want in future. I work with individuals, business owners and entrepreneurs. I specialise in retirement planning, investments and business protection.