Investing Guides for Beginners | Funds, ETFs, Investment Trusts & More
New to investing and not sure where to start? Our beginner guides are designed to give you clear, jargon-free definitions of shares, funds, ETFs, bonds and more. Whether you’re new to the world of investing or you're just looking to brush up on your technical knowledge, we're here to debunk it for you.
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Frequently asked questions about investing
What is an Investment Trust?
An Investment Trust is a publicly traded company listed on the stock exchange. Its sole job is to invest in other assets, such as shares, property or bonds, on behalf of its shareholders. Unlike most funds, it has a fixed number of shares and a board of directors, which can borrow money to boost returns.
What is an ETF and how does it work?
An ETF, or Exchange-Traded Fund, is a single investment that holds a basket of shares, bonds or other assets, tracking an index like the FTSE 100. You buy and sell ETFs on the stock exchange just like a share, giving you instant diversification across many companies for one low-cost purchase.
What’s the difference between a share and a stock?
In UK investing, "share" and "stock" mean the same thing: a small ownership stake in a company. "Shares" is the more common UK term, while Americans usually say "stocks." Either word means you own a slice of that company, along with a claim on its profits and, often, voting rights at meetings.
What is a ready-made portfolio?
A ready-made portfolio is a pre-built basket of investments, chosen and managed by an expert, that matches a risk level such as cautious, balanced or adventurous. It's designed for people who want to invest without picking individual shares or funds themselves, making it a popular starting point for new investors.
What are Long-Term Asset Funds (LTAFs)?
LTAFs, are a newer type of fund that let everyday investors access illiquid assets like infrastructure, private equity and property, previously reserved mostly for institutions. Because these assets can't be sold quickly, LTAFs usually come with longer notice periods before you're able to withdraw your money.
What is a bond and how is it different from a share?
A bond is essentially a loan you make to a government or company in exchange for regular interest payments and your money back at a set date. Unlike a share, a bond doesn't give you company ownership. It's generally considered lower-risk, though returns tend to be more modest too.
Do I need a lot of money to start investing?
No. Most UK investment platforms let you start with as little as £25 to £50 a month, and many funds and ETFs can be bought for the price of a coffee. Starting small and investing regularly, rather than waiting for a lump sum, is one of the easiest ways to build long-term wealth.
How do I choose my first investment as a beginner?
Most beginners start with a diversified option like a ready-made portfolio or a low-cost index fund, rather than picking individual shares. This spreads your risk across many companies from day one. Boring Money's beginner guides explain each investment type in plain English so you can decide what suits your goals.