Stock markets such as the FTSE and S&P tanked following news that Russia had invaded Ukraine. Uncertainty over the consequences of the crisis has spooked investors and prompted a huge sell-off in stocks.

So is now a bad time to buy shares, or are there opportunities to be had while others are fearful?

In this article we set out:

Prefer to watch rather than read?

Here&#;s our video on investing during a crisis

Is now a good time to buy shares?

It all depends on what you buy. While the future of some companies look positive, the same can&#;t be said for all businesses.

It&#;s important to do your research into each company you buy. Listed companies release their financial results which can give you a picture of the health of the company.

Also bear in mind that some sectors fared better than others during the pandemic. Broadly speaking, technology companies have done well while travel firms have suffered.

However, even tech companies are experiencing share price volatility. Take a company as famous as Facebook. The tech darling&#;s owner Meta Platforms saw its stock market value drop by more than $bn (£bn) on 3 February this year in what was a record daily stock market fall for a US firm.

Meta&#;s shares fell 26% after it announced daily active user numbers dropped for the first time in the company&#;s 18 year history, and they have not yet recovered.

Remember:

• Don&#;t buy shares in a company just because someone said you should (always do your own research first)
• Selecting and monitoring individual shares is time-consuming
• You can buy investment funds or use a robo-adviser so that an expert investor can select shares on your behalf

If you&#;re new to investing, you might want to read our beginners&#; guide to investing first.

Why has the stock market dropped?

Most major stock markets dropped off a cliff on February 24 following news that Russia had invaded Ukraine. The crisis has caused huge amounts of uncertainty as investors worry this will spill over into the businesses they are invested in.

As a result, lots of investors sold their stocks. The FTSE , the index which measures the performance of the largest companies in the UK, dropped by % in the first few hours of trading that day.

It&#;s never a good idea to panic and sell stocks when the markets are falling because there is a danger that you could end up crystallising losses. We explain how to invest in volatile times later on in this article.

Also bear in mind that stock markets have been very volatile since the start of the pandemic.

While most restrictions in the UK have now been withdrawn, some markets continue to wobble because of concerns about new waves of coronavirus.

Is now a good time to invest?

Reasons to feel hopeful about the stock market:

• Successful booster vaccination roll-out has led to an increase in movement, trade and spending
• Industries that were hit by subsequent lockdowns, such as travel and entertainment, have reopened
• Takeovers will continue as investors and companies seek new opportunities
• Some sectors are booming: technology, e-commerce and biotech have thrived during the pandemic and will continue to grow
• Despite gradual increases, the UK&#;s national interest rate is still low at %, which is encouraging people to spend or invest

Reasons to feel cautious about the stock market:

• The impact of the Ukraine crisis could hit global businesses
• Some nationals are still fearful over new strains of the coronavirus
• Rising inflation will weigh heavily, meaning people have less money in their pockets
• Disruption caused by the global energy crisis may continue for some time
• Brexit is still affecting supply chains
• Central banks are unwinding pandemic support measures

Crashes can come out of the blue and their causes only become apparent with hindsight.

Find out more about how to invest during a recession.

When will the next stock market crash happen?

A stock market crash is a sudden and significant drop in the value of stocks.

Some stock market speculators panic and sell their shares fearing that if the price falls further, they could lose even more of the money they invested.

No one can accurately predict whether or not the stock market is going to crash. All you can do is evaluate which factors will influence the stock market and your particular investments. 

Bear in mind that when stocks rise rapidly, there is always a danger that they could fall just as quickly.

The FTSE share price, which measures the performance of the largest listed British companies, had been reaching fresh highs before plunging on news that Russia was invading Ukraine.

If you&#;d like to know more about today&#;s big investment trends, check out our guide here.

The ups and downs of the market

Beware of market volatility at the moment. The FTSE , which measures the performance of the biggest companies in the UK, has been on an upwards trajectory over the past year but it has been a bumpy road to get there.

Netflix, Deliveroo, and Peloton are good examples of the fluctuations in share prices that you need to consider when investing.

The streaming service, food delivery company and exercise equipment maker were seemingly three of the corporate winners of the coronavirus outbreak.

Below, we explain how their shares have performed over the past two years.

Upsides

• Netflix gained 16m new subscribers during , revenues of $bn in April and predicted a better second quarter to the year
• Deliveroo has benefitted from a $m Amazon investment, increased customer engagement
• Peloton shares gained % through

Downsides

But none of these companies are immune to the negative affects of the pandemic or other headwinds:

• Netflix
  • Production of many new Netflix shows were halted
  • Competition in the sector notably from the newer players like Disney+
  • Lower than expected sign-ups in the first quarter of

• Deliveroo
  • Yet to turn a profit: while its revenues grew 54% to £bn last year, the company made a loss of £m
  • Deliveroo shares fell 30% in the first 20 minutes of its listing on the London Stock Exchange on March 31,
  • Reliance on gig-economy workers at a time when they are being handed more legal rights

• Peloton
  • Peloton share price has dropped by 82% to $29 from its peak of $ in December
  • A series of accidents with equipment led to the death of a child and the company announced a massive product recall
  • A victim of its own lockdown success, with supply chain problems
  • Peloton&#;s future is uncertain now gyms have reopened

These are good examples of why you need to weigh up the pros and cons of each company before you buy their shares.

You might want to read more in our article How to buy shares.

Here are eight things to consider:

1. Volatility

Equities can be very volatile when there is uncertainty and could pull back a lot if new variants of COVID are discovered that evade the vaccines. 

2. Context is everything

Just because something is not cheap it does not make it unattractive.

Interest rates have risen but they are still very low. In this environment, businesses in growing markets with access to cheap money tend to do well and what you pay now may look cheap in ten years.

3. Not all equities are the same

Some shares are in fact expensive because they are over-hyped. This means they might fade away over the next few years.

4. Are you happy going against the crowd?

Investing when people are fearful is understandably daunting, particularly when there is so much uncertainty in the world.

But consider whether you believe will be in a better situation by the time you will want the money. Things can always get worse before they get better.

5. Investing is for the long-term

Remember a “loss” is only a loss when you sell the investments. Your decision depends on how quickly you’d need the money and whether you understand that shares can fall as well as rise. Can you stomach losing money should markets continue to fall?

6. Inflation

With interest rates still low at %, a savings account won’t help your money grow.

When you allow for inflation, which measures the rising cost of living and is currently at %, you’re almost guaranteed to be worse off.

Investing gives your money the best chance of growing.

7. Use a stocks and shares ISA

It&#;s a good idea to hold your shares in an ISA to protect your earnings from dividend tax and capital gains tax.

We explain: How are shares taxed?

8. Buy a pool of shares

If you would rather invest in a basket of shares rather than choosing them yourself, you could invest in a fund.

Some funds simply track a stock market like the S&P , which is an index measuring the biggest companies in the United States.

Why should you drip feed?

If you are thinking what shares to buy now, remember it is almost impossible to time the market perfectly to make the most of your money.

For example:

• Invest when markets are rising, you may have missed the boat for the best returns
• Invest when the markets falling, and they could fall a lot further still

Drip feeding your money in slowly, rather than investing it all in as one lump sum, removes this tricky decision.

This not only encourages a good savings habit. It smooths the investment journey by buying more units when markets are lower (known as pound cost-averaging)

How do you get dividends?

Dividends are what a company pays to shareholders when it makes a profit.

The pandemic has affected the cash position and growth of a number of businesses, which has impacted on the amount shareholders have received in dividends.

Throughout the UK’s biggest banks RBS, Barclays, Santander, HSBC, Lloyds, and Standard Chartered all suspended dividend payments and share buybacks.

Dividend-paying stocks are often a popular choice to include in your investment portfolio. But remember, the dividends you earn might be subject to tax.

Four tips for investing during uncertain times

Here are our four golden rules when it comes to investing during a financial crisis:

1. Stay calm: the pandemic has stirred up a lot of emotions, but stay rational about your investments.
2. Consider your aims: investing is personal. You choices depend on your circumstances, objectives, needs and risk tolerance. The key is diversification
3. Use your tax relief: you can invest tax-free with an ISA. You can also get an instant uplift with a pension and a lifetime ISA, as the government will add extra cash whenever you pay in more money. We explain more about that here.
4. Drip-feed your money: if the markets go down further you’re buying at a cheaper level and it could help smooth out your returns, with the hope they recover and grow in the longer term. 

Best sectors to invest in

Making the most of a buying opportunity often means looking for firms that are well placed for any potential structural shifts.

Here are some sectors that are worth paying attention to:

• Fintech: companies that help people work remotely or pay for goods or services are worth investigating.
• Ecommerce: the pandemic has boosted online shopping as people continue to stay away from crowded malls and supermarkets.
• Renewable energy: a rapid fall in the cost of building renewable energy projects has happened at the same time as a greater awareness of the climate crisis. These assets provide reliable income streams, which are often backed by government subsidies. Read more in our guide to ethical investing.
• Online gaming: these businesses were among the most resistant to the Covid stock market sell-off.
• Commodities: this includes precious metals such as gold and silver which are often seen as &#;safe&#; assets to hold during market turmoil (though remember all investments come with a degree of risk).
• Banks: the banks could be worth watching. Remember, banks have been through the financial crisis and may therefore fare better in an economic recovery than markets anticipate.
• Leisure sector: after months of isolation, people want to go out and spend. Restaurants and pubs with the strongest balance sheets might fare very well as they might have the opportunity to pick up cheap distressed assets from rivals that went bust.

Should you buy cheap British stocks?

One of the world’s biggest investment banks JP Morgan has been telling investors to buy British stocks now while they are cheap.

The investment firm had taken a bearish stance on British stocks since the EU referendum in June When compared to companies in the US and Europe, UK shares have underperformed since the Brexit vote.

But JP Morgan has said there are a few things that could change the fortunes of British stocks:

• UK shares have strong dividends
• Stock markets like the US and China are expected to struggle maintain their momentum going forward, paving the way for the UK to outperform
• UK stocks have tended to rise in the months after an interest rate rise.

What are the stocks to invest in right now?

We have listed some companies below that might be worth considering. However, we always recommend that you do your own research before buying shares.

• Rolls Royce: the company makes engines for planes that embark on long-haul flights. With so many planes being grounded during the pandemic, the Rolls Royce share price suffered. However, things are looking more positive after it swung into profit.
• Avast: the cybersecurity group could be bought by an American rival. Analysts valued the FTSE company at £bn and suggested the business could end up in a bidding war. The news prompted the Avast share price to climb 17%.
• Wise: previously called Transferwise, it converts money into different currencies, but it has plans to branch into other areas of financial services.
• Nissan: the shares look interesting given its plans for an electric battery factory in Sunderland that is set to be worth £1bn.
• JD Sports share price rose after the company&#;s five-for-one share split at the end of November. JD is now valued at £bn, and after Tesco is Britain&#;s second most valuable shops group.  
• Beyond Meat&#;s share price rose on the news that the plant-based company&#;s chicken alternative will be available at Kentucky Fried Chicken (KFC) across the US. A number of other companies have also teamed up with Beyond Meat and it looks like the move towards vegan, vegetarian and flexitarian diets continues.
• Taylor Wimpey&#;s

2. Coca-Cola – best shares to buy today for dividends

If you’re in the hunt for the best shares for dividends – look no further than Coca-Cola. This large-cap stock is one of the best dividend payers in the market – not least because it has increased the size of its annual distribution for almost 60 consecutive years.

There is no reason to believe that this consecutive annual increase will end any time soon – so ​​Coca-Cola will appeal highly to those seeking consistent income payment. In terms of share price growth, Coca-Cola is up 25% over the prior 12 months.

3. Nvidia – large-cap stock dominating the GPU industry

Nvidia is one of the largest companies listed on the NASDAQ – with a market capitalization of over $ billion as of writing. This stock is largely involved in graphics processing units (GPU), albeit, it has since diversified into computing chips, automotive technology, and mobile hardware.

Although Nvidia is already home to a huge valuation, it is still one of the fastest-growing stocks of the prior five years. For instance, Nvidia stocks have grown by 87% and % over a 1-year and 5-year basis respectively.

4. AT&T – undervalued stock to buy right now

The stock performance of AT&T over the past few years has been nothing short of a disaster. For example, the stocks are down almost 35% over the prior five years and a more modest loss of 6% on a 1-year basis.

However, AT&T is still the world’s largest telecommunications company and moreover – the firm is still progressing through its much anti[icipated 5g rollout. At current prices, AT&T represents one of the best shares to buy today in terms of value. As of writing, you’ll also have a juicy running yield of 7% to fall back on.

5. Tesla – one of the best shares to buy now for growth

Although Tesla is now a trillion-dollar company that has been trading on the NASDAQ for over a decade, the firm is still viewed by many as a strong growth stock. After all, in the prior five years alone, the EV maker has seen its shares increase by almost 2,%.

Since its IPO debut in , this growth figure stands at an impressive 25,%. Crucially, Tesla didn’t report its first full-year profit until early – meaning that it was running at an annual loss since it was founded in

This says to us that there is still plenty of upside potential left on the table for Tesla shareholders – especially when you look at how quickly its EV sales numbers are increasing.

6. Bank of America – top financial stock that continues to outperform the market

Although many financial stocks have struggled in recent years – this couldn’t be further from the truth in the case of the Bank of America. On the contrary, this top-rated banking firm continues to outperform market expectations.

For example, the KBW Bank Index – which tracks the market performance of the 24 largest financial institutions in the US – has grown by 53% on a 5-year basis. In comparison, the value of Bank of America shares has increased by % over the same period.

7. Johnson & Johnson – blue-chip stock for long-term investors

While growth stocks can give you the opportunity to make above-average market gains, blue-chips provide your portfolio with some much-needed stability. And one of the best shares to buy today for this purpose is Johnson & Johnson.

Although your potential returns are likely to be modest, Johnson & Johnson is home to a rock-solid portfolio of products and services that are always in demand. The blue-chip stock is a Dividend King just like Coca-Cola – so income investors are catered for too.

8. Marriott International – top hotel shares to add to your portfolio

Virtually the entire hotel and hospitality sector has struggled since the pandemic began in – not least because of global lockdown measures and broader travel restrictions. However, Marriott International – which is the largest hotel chain globally, continues to perform well.

For instance, the stocks are up 21% and 82% over a 1-year and 5-year period – and the firm is now commanding a market capitalization of over $50 billion as of writing.

Even more importantly, throughout the pandemic, Marriott International continued to invest money into its global expansion program. And, in late , the hotel giant reintroduced its dividend policy.

9. Canopy Growth – cheap stock to gain exposure to the legal cannabis industry

Legal cannabis – both in terms of recreational and medical usage, is an industry that many investors are keeping an eye on. Over the course of the past decade, more and more governments have relaxed cannabis-related laws, which has since opened up the doors to growers, retailers, and auxiliary service providers.

At the forefront of this is Canopy Growth – a TSE and NASDAQ-listed producer of legalized marijuana. Crucially, this stock is down over 77% in the prior year alone – which means that if you are a firm believer in the future of the legal cannabis industry – you can invest at a huge discount. As such, Canopy Growth could be one of the best shares to buy today.

Apple – huge global brand awareness with significant stockpiles of cash

To conclude our list of the best shares to buy today – it’s also worth considering Apple. This tech-powerhouse is the largest US-listed stock in terms of market capitalization, which, as of writing, stands at over $ trillion.

Moreover, Apple is still stockpiling its huge cash reserves, which are once again creeping towards the $ billion figure. This will subsequently allow the business to continue its diversification objectives – especially in its services division.

Where to buy the best shares today – top brokers

Once you have decided which shares to buy today – you can then proceed to invest in your chosen stocks online.

But, you must first open an account with a stock broker that offers low fees and a strong regulatory framework.

In your search for the best platform to buy shares – consider the pre-vetted brokers reviewed below.

1. eToro – overall best platform to buy shares in

All of the companies that made our list of the best shares to buy today are available at eToro on a commission-free basis. In fact, the platform is home to a total portfolio of stocks that not only runs into the thousands – but across 17 markets. This includes stocks listed on the two primary US exchanges, as well as in Europe, Asia, and more.

eToro – which is used by more than 20 million registered users, will also appeal to those on a budget. This is because US and UK investors can get started with an account by depositing just $10 ($50 elsewhere). Furthermore, you can invest in any of your chosen shares from just $10 – regardless of how much the stocks are trading for.

We also like the fact that verified eToro accounts take less than five minutes to open and that you can deposit funds instantly with a Visa, MasterCard, Paypal, Neteller, or Skrill.

This top-rated brokerage – which is regulated by the SEC, FCA, and other bodies – also offers Copy Trading tools and SmartPortfolios. These features allow you to invest passively.

>>> Buy Shares at 0% Commission on eToro Now <<<

68% of retail investor accounts lose money when trading CFDs with this provider.

2. www.oldyorkcellars.com – trade share CFDs commission-free

Next up we have www.oldyorkcellars.com – a heavily regulated brokerage site that allows you to trade shares via CFDs. In a nutshell, this means that you can speculate on the rise or fall of your chosen stock without actually owning any shares. In turn, this allows you to trade on a super cost-effective basis – as www.oldyorkcellars.com charges nothing in commission.

At this top-rated platform, you will have access to thousands of US and foreign share markets – as well as ETFs, forex, commodities, and more. Another core feature offered by www.oldyorkcellars.com is leverage. This allows you to enter positions with more money than you have in your account. Finally, www.oldyorkcellars.com offers a mobile app – should you wish to trade share CFDs on the move.

>>> Trade Share CFDs on www.oldyorkcellars.com Now <<<

Your capital is at risk.

Conclusion

In choosing the best shares to buy today – it’s a wise idea to build a basket of stocks from a wide spectrum of industries and sectors. In doing so, this will ensure that you are not over-exposed to a small number of companies.

In terms of where to buy the best shares in – eToro is the best broker for the job. Not only does this regulated platform offer thousands of shares at 0% commission – but you only need to meet a small minimum stock purchase of $

>>> Buy Shares at 0% Commission on eToro Now <<<

68% of retail investor accounts lose money when trading CFDs with this provider.

This article is part of a paid partnership with financial services company eToro.

Stock markets can be scary places for anyone new to investing: a mass of numbers, flashing screens and impenetrable jargon. A far cry from dropping coins into a piggy bank, or paying cash into a high street savings account.

If you’re saving for the future &#; five years away at the very minimum &#; investing in the stock market has the potential to produce greater rewards than cash on deposit. And it can also head off the corrosive effect of rising prices.

Here’s a run-through of investing basics, plus a look at the ways beginners can buy stocks and shares.

Note: before you consider going down the investing route, it’s sensible to build up a ‘rainy day’ cash fund worth at least three (and preferably six) months of your usual outgoings.

What is investing?

It’s worth starting with a definition of what investing is, and why people do it. Investing is the process of using your money to generate a profitable return (although it should be noted that investing carries with it the risk of loss, except where holdings are kept as cash).

The investing process involves putting your money into a range of investments.

What are these ‘investments’?

There are four main types, which you’ll hear referred to as ‘asset classes’. They include:

• cash &#; savings that you build up in a bank or building society account
• bonds &#; also known as ‘fixed-interest securities’. A bond is an IOU that pays its holder interest in exchange for a loan to the bond issuer. If the issuer is the UK government, the bond is known as a ‘gilt’. Companies also issue IOUs known as ‘corporate bonds’.
• property &#; an investment in bricks and mortar, either in the hope that a building’s value will rise, or that you’ll benefit from its rental income. Or a combination of both.
• stocks and shares &#; these are interchangeable terms, and they are also known as equities. Equity investing is where you buy a stake in a company either directly, or via a fund (a form of collective investment, where your money is pooled with that of potentially thousands of other investors). As a shareholder, you are a part-owner of a business, and you’ll share in both its financial successes and failures.

Other asset classes exist such as fine wine, art and classic cars. But mainstream financial products tend to focus on the above list.

An accumulation of assets is often referred to as a ‘portfolio’. There’s nothing to stop an investor focusing on just one asset type, but there’s an ‘all-your-eggs-in-one-basket’ risk associated with doing this.

Spreading your money among different asset classes &#; known as ‘diversification’ &#; is a sound investing policy.

Risks attached

Every investment carries a degree of risk, some greater than others. Generally, the higher an investment’s potential return, the higher the risk of losing your money.

In terms of the asset classes outlined above, the risk associated with each tends to increase as you read down the list.

For example, with savings accounts, the risk of UK savers losing their money is virtually zero thanks to strict compensation rules in place should a provider ever get into trouble (see our article on the Financial Services Compensation Scheme). 

The trade-off, however, is that the returns you can expect are modest at best, from virtually nothing up to around 2% a year.

With UK inflation running at well over 5%, this means that the real value of money held on deposit decreases year-on-year because of rising prices.

Bonds are riskier than cash because there’s the chance an issuer will not meet its interest payments and ‘default’. Again, the trade-off comes in the shape of a slightly higher rate of interest than cash, typically in the range 2% to 3%.

Shares and property have the potential to generate better returns and therefore sit at the top of the risk/return ladder. 

Share are often an investor’s first foray into stock markets, so that’s where we’ll focus on for the rest of this article.

Why buy shares?

Historically, the return on equity investments &#; between 3% and 6% a year going back over years, according to Credit Suisse &#; has outstripped other asset classes (although past performance is no guarantee for the future).

However, before parting with any cash, it’s worth taking time to weigh up whether investing in shares is definitely for you and to ensure you do it in a sensible and secure way.

Be prepared for ups and downs

With equity investing, you need to keep your ultimate financial goals in mind and be prepared to ride out stock market ups and downs.

Whichever method you choose (see below), there’s also a cost consideration. It doesn’t cost anything to open a deposit account with a high street bank. But, when buying shares, extra charges will be incurred beyond the cost of owning a piece of the company itself.

Investing in shares also means there may be tax considerations, for example, when selling part of your portfolio.

Before taking the plunge with any form of stock market-linked investment, ask yourself five questions:

• Should I get financial advice?
• Am I comfortable with the level of risk and can I afford to lose money?
• Do I understand the investment in question and could I get my money out easily?
• Are my investments regulated?
• Am I protected if an investment provider or my adviser goes out of business?

Types of investment 

There are several ways to invest. You can opt for one, some or all of the following. It boils down to your goals and how actively involved you’d like to be in managing your portfolio. The main options are:

• Buying individual shares. This is probably the most time-intensive option. You’ll need to do plenty of research and ‘own’ your decisions.
• Invest in share-based exchange-traded funds (ETFs). ETFs are a half-way house between buying shares direct (above) and buying funds (below). ETFs invest in a range of individual shares to track an underlying stock index such as the UK’s FT-SE Investing via ETFs is like buying into the companies that are on the same index. ETFs are traded on exchanges in the same way as companies, but offer greater diversification.
• Invest in collective/pooled investment funds. These are run by professional managers, who run portfolios of shares and other asset classes on behalf of investors. Funds focus on specific countries or geographic regions (such as the UK, the Far East) or sectors (such as technology). Actively managed funds are where managers decide which companies to include in their portfolio. Passively managed funds use algorithms to track the performance of a particular stock market index.

How can I start investing?

1) Open an investment account 

DIY investors require access to a dealing account, such as the ones offered by online investment platforms and trading apps. These provide would-be investors with a range of share dealing services.

Investment platforms are represented by some of the biggest names in stock broking and fund management and include the likes of Hargreaves Lansdown, interactive investor and Fidelity. Several providers have created a choice of ready-made portfolios featuring a range of investments based on the investor’s tolerance to risk.

Investors can also choose from an increasing array of dedicated share trading apps.

Some platforms provide users with the chance to practise trading using virtual money before taking the plunge for real.

No single investment platform or app is going to suit all types of user. Personal preference, look and feel, will play a part when making a choice. On top of these considerations, it’s important that a provider offers access to the investments you’re looking for.

It’s also to pay as little as possible for each trade you make and to minimise any other administration charges. Read more here about the charges levied by investment platforms and apps.

If you’re going to opt for the DIY investing route, consider opening a stocks and shares individual savings account (ISA). This is a tax-efficient savings product that acts as a wrapper around your investments, sheltering any profits from three key areas of tax: income tax, dividend tax and capital gains tax.

Most platforms enable investors to run a stocks and shares ISA within their service.

2) Choose a robo-adviser

If you have a sizeable amount to invest (say £10,) but the prospect of being responsible for all your own trades seems a little daunting, you could opt to use a robo-adviser.

Robo-advisors are a simple, inexpensive way to invest in stocks &#; a half-way house between a DIY approach (above) and full-blown face-to-face investment advice (below). You provide information on how much you earn, why you want to invest, your financial goals and attitude to risk and are given a ready-made investment portfolio by an automated system.

Once you’re up and running, the robo-adviser provides you with updates on your investment performance. This approach is convenient and relatively cheap &#; typically charging customers a few hundred pounds to get started. They’re also fast &#; you could have a live portfolio within an hour or two.

But because the process is automated and uses data provided by the customer, robo-advisers do not make intuitive recommendations. Depending on the provider you choose, there may also be limited choice in terms of the options on offer.

3) Choose a financial adviser or wealth manager

If you have a larger amount to invest, for example a six-figure inheritance or windfall, you could pay for the services of a financial adviser.

But you still need to decide what kind of advice you need and the goals you’re working towards. For example, are you investing with a particular event in mind, such as retirement?

You also need to decide your appetite for risk, how long you want to tie your money up for, and whether you need advice on different types of investment such as ones run according to ethical or environmental principles.

When you meet with an adviser, you should be given information including:

• Whether the advice is independent or restricted &#; restricted means an adviser is limited to the number of providers s/he can recommend. An independent adviser can access the whole market.
• Level of advice &#; are you looking for information to help inform a decision, or do you want an adviser to manage your investments?
• How much you’ll be charged &#; this may include an hourly rate, a set fee, a monthly retainer, or a percentage of the money being invested. Fees can vary so it’s worth shopping around.
• How your adviser is regulated &#; the firm should appear on a register published by the financial watchdog, the Financial Conduct Authority.

You can find out more information about financial advice from Citizens Advice. For lists of  independent and restricted advisers take a look at the Unbiased, Personal Finance Society and VouchedFor websites.

Inflation poses a serious threat to the value of our savings. If inflation is six per cent and the interest rate on your savings is one per cent, your money is losing five per cent of its real value, or spending power. With inflation now expected to exceed even the Bank of England’s per cent forecast peak this spring, and to remain high for quite a while as the impact of the Ukraine conflict feeds through into consumer prices, that situation isn’t going to improve quickly.

So cash Isas are a bit pointless?

It is essential to build up and maintain a good cash savings buffer before you think about doing other things with your money. But with inflation at per cent and rising, and the best cash Isas currently paying per cent for easy access and per cent for a one-year fix, it is a bleak outlook for cash savers.

With the personal savings allowance, basic rate taxpayers can receive interest payments of up to £1, a year tax free from a normal savings account, and higher rate taxpayers can receive £ of interest tax-free. With the best non-Isa savings accounts paying per cent easy access and per cent one-year fix, it would seem sensible for most people to use these for their cash savings and retain the option of using their Isa allowance for something else.

The latest government data showed that in , about 61 per cent of Isa contributions went into cash Isas – despite ultra-low interest rates on cash deposits – and about 36 per cent into stocks and shares. Although in terms of overall value of funds, investing Isas made up 51 per cent, which perhaps reflects their stronger growth potential. The Financial Conduct Authority has expressed concern that too many people are missing out on higher returns by hoarding cash.

So how do I use my Isa allowance?

Those saving for the deposit on a home might look to a Lifetime Isa (Lisa) as the generous government top-ups on these will go a long way to compensating for the effects of inflation. But be aware of the rules and restrictions on how you access and use Lisa savings. You can pay a maximum of £4, into a Lisa in one tax year to get the maximum £1, top-up, so even if you do this, £16, of your Isa allowance will remain unused.

Whether you open a Lisa or not, if you are willing to think in the long term and leave your money untouched for several years, an investing, or stocks and shares, Isa is worth considering. Both the profits you make from the rising value of investments (capital gains) and the income you receive from dividends (also called yield) are protected from tax.

But isn’t now a crazy time to start investing?

Stock markets can be volatile over the short term. Over the medium to long term, however, they have a strong track record. While there is no guarantee that stock markets will rise, historical evidence is fairly clear that markets trend upwards over the long term.

The MSCI World Index of global developed market equities is currently about per cent above where it was five years ago, which breaks down into annualised returns of 11 per cent, and per cent above where it was 10 years ago, equivalent to annualised gains of about per cent. That means even after taking fees into account, £1, invested in a simple global equities tracker ten years ago would now be worth more than £3,

Despite this, it can still be intimidating to put a lump sum into stock market-based investments at a time when international conflict and potential economic shocks are causing market volatility.

So how do I get into investing without taking too many risks?

On top of the fundamental willingness to remain invested for five or more years, there are two main things the newbie investor can do to mitigate against risk:

a) Choose a ready made portfolio or a multi-asset fund, which will spread their money across a variety of assets including equities and bonds, and this diversification will hopefully mean that if equities suddenly fall, then other assets will help to stabilise your portfolio.

Most Isa platforms offer several of these, with a choice of how much growth and risk is targeted, which means that anxious investors can choose a cautious option that will have less committed to equities and more to “defensive” assets. Of course, a cautious approach will limit how much growth is achieved in good times.

b) Drip-feed into your investments with monthly contributions. By buying into the market at different levels each month you are helping to smooth out volatility. And when the stock market falls you have the benefit that you are picking up more shares (because they cost less), which in the long term could provide high returns.

It’s important to remember that you do not even have to invest right now to use your Isa allowance: you can fund your account with cash before the end of the tax year to bag some or all of the /22 allowance, and then either drip-feed that into investments, or just leave it there until you make your investment choices. If you don’t use your allowance, you lose it.

Adrian Lowery is personal finance analyst at Bestinvest.

You should only consider making an investment if:

• You’re willing and able to accept a level of investment risk and won’t need the money for at least 5 years. With investing, there’s no guarantee of making money and you could get back less than you invest.
• You’ve saved a supply of cash that you can access easily for emergencies – a good rule of thumb is to have around months of expenditure.
• You want the chance to grow your money more than you could with cash.

You can also read around the subject. We've covered what we think you need to know, from investing essentials, to understanding how to manage behaviours to make the right decisions.

Learn more about investing

Investing in individual companies isn't right for everyone – it's higher risk as your investment is dependent on the fate of that company. If a company fails, you risk losing your whole investment. You should make sure you understand the companies you're investing in, their specific risks, and make sure any shares you own are held as part of a diversified portfolio.

No stocks on London’s markets have experienced markedly different fortunes since the start of but, overall, the FTSE index has risen by more than 11 per cent in the past year, while the FTSE has jumped by more than 12 per cent. Some experts think such gains could moderate over the next year.

FTSE listed firms will shell out £bn in dividends this year, up £bn on levels seen in Experts at AJ Bell are forecasting a more modest £bn, or 4 per cent, annual increase in The outlook for individual stocks is uncertain, and it is unclear whether the economic recovery will continue at pace, or if new Covid variants will plunge the nation back into a major healthcare crisis. Whatever happens, there will be winners and losers on the stock market.

i asked experts from 10 brokers and investing platforms to give their single top UK stock pick for AJ Bell’s chief executive, Andy Bell, has also revealed which stock he has his eye on as we head into the new year.

Croda

Ticker: CRDA; Share price: 9,p

One company I believe could do well in is Croda, which is a global manufacturer of ingredients for fast-growing, niche consumer markets and specialist industrial markets.

The company has been able to flex its financial muscles through the pandemic, relative to its peers, by investing in new technologies and through the acquisition of Iberchem to strengthen its core offering. I believe Croda is a quality company and investors could continue to be rewarded over the coming years.

Zoe Gillespie, investment manager at Brewin Dolphin

Ashtead

Ticker: AHT; Share price: 6,p

It has been a good year for much of the FTSE , but international equipment rental company Ashtead continues to be a star performer. The sell-off caused by Covid in prompted only a brief interruption in the long-term rise of this strong performer, when others have struggled to recoup their previous bullish form. Its focus on the US economy continues to provide reason for optimism and, even with the outlook weakening, at present the shares look well-placed to benefit from continued fiscal stimulus and the overall strength of the US economy.

Chris Beauchamp, chief market analyst at IG

easyJet

Ticker: EZJ; Share price: p

Travel stocks have been battered during the pandemic and have struggled since the Omicron variant was discovered. The expectations for airlines are particularly low and so their valuation reflects that.

While Omicron is causing panic among governments and scientists, we don’t see a return to strict travel restrictions at this stage, particularly in Europe, where easyJet operates. Before Covid, you would have had to go back to to get easyJet this cheap. The pandemic will pass and, at this price, you can argue the risk-reward is there for easyJet.

Adam Vettese, analyst at eToro

AJ Bell boss Andy Bell 

easyJet

The travel sector continues to suffer Covid-related setbacks, but longer-term demand for a week in the sun is unlikely to be diminished by the pandemic. If you can hold your nerve, one of the best times to invest is when share prices are weak, and easyJet certainly fits the bill.

It offers good value for money and a better flying experience than rivals like Ryanair. In October the airline said bookings were picking up and chief executive Johan Lundgren declared: “it is clear recovery is underway”.

The company received a takeover offer in , rumoured to be from Wizz Air, and another bid wouldn’t be a surprise if the share price stays low. International Consolidated Airlines is keen to do more in the low-cost market and buying easyJet would be a quick way to do it.

easyJet founder Stelios Haji-Ioannou didn’t take part in the airline’s recent £billion fundraise which means his stake in the business has been diluted. He is now unable to veto key decisions by the board that require the support of three quarters of shareholders. That effectively makes it easier for someone to come along and try to buy the business.

Fuller, Smith & Turner

Ticker: FSTA; Share price: p

It might seem like looking for trouble by selecting pubs-to-hotel group Fuller, Smith and Turner at a time when a new Covid variant is prompting fresh debate over the merits of socialising in groups. But the best investment decisions are often the ones that make you feel most uncomfortable. If the Omicron scare passes quickly, then the Chiswick firm should be well placed to benefit from rising footfall in commuter hubs, high streets and tourist hotspots.

If it does not, we have some downside protection. Net debt is low and the £m market capitalisation compares to a conservative valuation of the firm’s net assets of £m, so the shares are trading below book value. That already prices in a lot of bad news.

Russ Mould, investment director at AJ Bell

Future

Ticker: FUTR; Share price: 3,p

There’s a certain irony in a firm called Future selling print magazines. But that’s why its transition towards a digital-led model is so appealing. So far, the strategy has been to snap up popular titles like FourFourTwo and widen the company’s overall readership to increase advertising revenues. Stumping up around £m to buy comparison site GoCompare adds to the ability to lead readers straight from article to price comparison to sale.

A massive jump in underlying operating profit and operating margins of 32 per cent are not to be sniffed at. Next year will be all about maintaining a cadence of high-quality acquisitions and using even greater scale to get eyeballs reading, comparing and boosting revenues.

Dan Lane, senior analyst at Freetrade

Halma

Ticker: HLMA; Share price: 3,p

Halma’s growth has been nothing short of spectacular. Since listing in , it has grown to more than £11bn in size, producing some of the most impressive returns on the London Stock Exchange. Its management’s ability to grow the business, both through acquisitions and organic growth, has led to impressive long-term growth.

And, while shares consistently trade at a premium to the market, we believe that this is more than warranted given its lengthy track record and ability to consistently grow both revenues and profits at impressive rates.

Ben Staniforth, research analyst at Redmayne Bentley

International Consolidated Airlines Group

Ticker: IAG; Share price: p

Travel company shares were pummelled by the pandemic and have only recovered some of their losses in the market rally.

However, International Consolidated Airlines Group (IAG) shares remain a long way off from their pre-pandemic levels. Chief executive Luis Gallego Martín has confirmed that there are no plans to follow easyJet’s lead and go cap in hand to shareholders to ask for extra cash via a rights issue, so dilution of existing shareholders now looks less likely. Of course, the path of the pandemic will be a significant driver of returns. Once the global economy normalises, IAG’s shares could really fly.

Garry White, chief investment commentator at Charles Stanley

Saietta Group

Ticker: SED; Share price: p

Saietta has developed a highly efficient and affordable axial flux electric motor. The International Energy Agency estimates that 45 per cent of all electrical energy flows through electric motors globally. And with Saietta claiming that its motor is up to 10 per cent more efficient than conventional radial flux motors, the potential is significant, which is why we’re invested in it ourselves. Auto manufacturers Daimler and Renault have acquired other axial flux manufacturers, demonstrating the utility of this technology. Saietta is the only pure play for investors looking to play this trend.

Leigh Himsworth, portfolio manager at Fidelity UK Opportunities

Tesco

Ticker: TSCO; Share price: p

Tesco has largely shrugged off the supply chain crisis, partly due to its enormous scale and the indications are that it will continue to do this even as price pressures ramp up. The advanced, deeply rooted nature of its supply relationships has been a real benefit in enabling the supermarket giant to keep its shelves well stocked. The huge scale of its distribution also gives the group added flexibility to deliver goods, despite ongoing challenges in the broader logistics space.

It’s managing to outshine its competitors in the process, which is particularly good timing given the reinvigorated competition expected following the acquisitions of Asda and, most recently, Morrisons.

Susannah Streeter (left), senior investment and markets analyst at Hargreaves Lansdown

Whitbread

Ticker: WTB; Share price: 2,p

The expected staycation rise in the UK due to restrictions on overseas travel played into hotel and restaurant group Whitbread’s hands. Also, the balance sheet is in good shape, which puts Whitbread in the enviable position of being able to continue to invest in the business at a time when some of its smaller competitors are hamstrung due to a lack of finance, or even face the prospect of going to the wall.

The company is showing no signs of slowing down strategically, with an aim for , rooms in the UK, and with investment in its other major market, Germany, continuing apace. Given concerns around the new variant, the shares fell, which should give scope for recovery as and when fears subside.

Richard Hunter, head of markets at Interactive Investor

Strike the right balance

High inflation has made getting investing decisions right all the more important, but it is not an exact science and no one can be certain how any single stock will perform next year.

Before taking the plunge with any investment decision, it is important to do your own research and, if required, seek advice from a financial professional. It can often be a good idea to have a broad portfolio of stocks or assets, rather than simply owning shares in a single company where all your eggs are in one basket.

It is also crucial to remember, as with any form of investing, that you could end up losing more money than you put in.

You should only consider making an investment if:

• You’re willing and able to accept a level of investment risk and won’t need the money for at least 5 years. With sites money making, there’s no guarantee of making money and you could get back less than you invest.
• You’ve saved a supply of cash that you can access easily for emergencies – a good rule of thumb is to have around months of expenditure.
• You want the chance to grow your money more than you could with cash.

You can also read around the subject. We've covered what we think you need to know, from investing essentials, stocks to invest in uk, to understanding how to manage stocks to invest in uk to make the right decisions.

Learn more about investing

Investing in individual companies isn't right for everyone – it's higher risk as your investment is dependent on the fate of that company. If a company fails, you risk losing your whole investment. You should make sure you understand the companies you're investing in, their specific risks, and make sure any shares you own are held as part of a diversified portfolio.

Stock markets can be scary places for anyone new to investing: a mass of numbers, flashing screens and impenetrable jargon. A far cry from dropping coins into a piggy bank, or paying cash into a high street savings account.

If you’re saving for the future &#; five years away at the very minimum &#; investing in the stock market has the potential to produce greater rewards stocks to invest in uk cash stocks to invest in uk deposit. And it can also head off the corrosive effect of rising prices.

Here’s a run-through of investing wie kann ich mit bitcoin geld verdienen, plus a look at the ways beginners can buy stocks and shares.

Note: before you consider going down the investing route, it’s sensible to build up a ‘rainy day’ cash fund worth at least three (and preferably six) months of your usual outgoings.

What is investing?

It’s worth starting with a definition of what investing is, stocks to invest in uk, and why people do it. Investing is the process of using your money to generate a profitable return (although it should be noted that investing carries with it the risk of loss, except where holdings are kept as cash).

The investing process involves putting your money into a range of investments.

What are these ‘investments’?

There are four main types, stocks to invest in uk, which you’ll hear referred to as ‘asset classes’. They include:

• cash &#; savings that you build up in a bank or building society account
• bonds &#; also known as ‘fixed-interest securities’. A bond is an IOU that pays its holder interest in exchange for a loan to the bond issuer. If the issuer is the UK government, the bond is known as a ‘gilt’. Companies also issue IOUs known as ‘corporate bonds’.
• property &#; an investment in bricks and mortar, either in the hope that a building’s value will rise, or that you’ll benefit from its rental income. Or a combination of both.
• stocks and shares &#; these are interchangeable terms, and they are also known as equities. Equity investing is where you buy a stake in a company either directly, or via a fund (a form of collective investment, stocks to invest in uk, where your money is pooled with that of potentially thousands of other investors). As a shareholder, you are a part-owner of a business, and you’ll share in both its financial successes and failures.

Other asset classes exist such as fine wine, art and classic cars. But mainstream financial products tend to focus on the above list.

An accumulation of assets is often referred to as a stocks to invest in uk. There’s nothing to stop an investor focusing on just one asset type, but there’s an ‘all-your-eggs-in-one-basket’ risk associated with doing this.

Spreading your money among different asset classes &#; known as ‘diversification’ &#; is a sound investing policy.

Risks attached

Every investment carries a degree of risk, some greater than others. Generally, the higher an investment’s potential return, the higher the risk of losing your money.

In terms of the asset classes outlined above, the risk associated with each tends to increase as you read down the list.

For example, with savings accounts, the risk of UK savers losing their money is virtually zero thanks to strict compensation rules in place should a provider ever get into trouble (see our article on the Financial Services Compensation Scheme). 

The trade-off, however, is that the returns you can expect are modest at best, from virtually nothing up to around 2% a year.

With UK inflation running at well over 5%, this means that the real value of money held on deposit decreases year-on-year because of rising prices.

Bonds are stocks to invest in uk than cash because there’s the chance an issuer will not meet its interest payments and ‘default’. Again, stocks to invest in uk, the trade-off comes in the shape of a slightly higher rate of interest than cash, typically in the range 2% to 3%.

Shares and property have the potential to generate better returns and therefore sit at the top of the risk/return ladder. 

Share are often an investor’s first foray into stock markets, so that’s where we’ll focus on for the rest of this article.

Why buy shares?

Historically, the return on equity investments &#; between 3% and 6% a year going back over years, according to Credit Suisse &#; has outstripped other asset classes (although past performance is no guarantee for the future).

However, before parting with any cash, it’s worth taking time to weigh up whether investing in shares is definitely for you and to ensure you do it in a sensible and secure way.

Be prepared for ups and downs

With equity investing, you need to keep your ultimate financial goals in mind and be prepared to ride out stock market ups and downs.

Whichever method you choose (see below), there’s also a cost consideration. It doesn’t cost anything to open a deposit account with a high street bank, stocks to invest in uk. But, when buying shares, extra charges will be incurred beyond the cost of owning a piece of the company itself.

Investing in shares also means there may be tax considerations, for example, when selling part of your portfolio.

Before taking the plunge with any form of stock market-linked investment, ask yourself five questions:

• Should I get financial advice?
• Am I comfortable with the level of risk and can I afford to lose money?
• Do I understand the investment in question and could I get my money out easily?
• Are my investments regulated?
• Am I protected if an investment provider or my adviser goes out of business?

Types of investment 

There are several ways to invest. You can opt for one, some or all of the following. It boils down to your goals and how actively involved you’d like to be in managing your portfolio. The main options are:

• Buying individual shares. This is probably the most time-intensive option. You’ll need to do plenty of research and ‘own’ your decisions.
• Invest in share-based exchange-traded funds (ETFs). ETFs are a half-way house between buying shares direct (above) and buying funds (below). ETFs invest in a range of individual shares to track an underlying stock index such as the UK’s FT-SE Investing via ETFs is like buying into the companies that are on the same index. ETFs are traded on exchanges in the same way as companies, but offer stocks to invest in uk diversification.
• Invest in collective/pooled investment funds. These are run by professional managers, who run portfolios of shares and other asset classes on behalf stocks to invest in uk investors. Funds focus on specific countries or geographic regions (such as the UK, stocks to invest in uk, the Far East) or sectors (such as technology). Actively managed funds are where managers decide which companies to include in their portfolio. Passively managed funds use algorithms to track the performance of a particular stock market index.

How can I start investing?

1) Open an investment account 

DIY investors require access to a dealing account, such as the ones offered by online investment platforms and trading apps. These provide would-be investors with a range of share dealing services.

Investment platforms are represented by some of the biggest names in stock broking and fund management and include the likes of Hargreaves Lansdown, interactive investor and Fidelity. Several providers have created a choice of ready-made portfolios featuring a range of investments based on the investor’s tolerance to risk.

Investors can also choose from an increasing array of dedicated share trading apps.

Some platforms provide users with the chance to practise trading using virtual money before taking the plunge for real.

No single investment platform or app is going to suit all types of user. Personal preference, look and feel, will play a part when making a choice. On top of these considerations, it’s important that a provider offers access to the investments you’re looking for.

It’s also to pay as little as possible for each trade you make and to minimise any other administration charges. Read more here about the charges levied by investment platforms and apps.

If you’re going to opt for the DIY investing route, consider opening a stocks and shares individual savings account (ISA). This is a tax-efficient savings product that acts as a wrapper around your investments, sheltering any profits from three key areas of tax: income tax, stocks to invest in uk, dividend tax and capital gains tax.

Most platforms enable investors to run a stocks and shares ISA within their service.

2) Choose a robo-adviser

If you have a sizeable amount to invest (say £10,) but the prospect of being responsible for all your own do the creators of snapchat make money seems a little daunting, you could opt to use a robo-adviser.

Robo-advisors are income producing investments comparison simple, inexpensive way to invest in stocks &#; a half-way house between a DIY approach (above) and full-blown face-to-face investment advice (below). You provide information on how much you earn, why you want to invest, your financial goals and attitude to risk and are given a ready-made investment portfolio by an automated system.

Once you’re up and running, the robo-adviser provides you with updates on your investment performance. This approach is convenient and relatively cheap &#; typically charging customers a few hundred stocks to invest in uk to get started. They’re also fast &#; you could have a live portfolio within an hour or two.

But because the process is automated and uses data provided by the customer, robo-advisers do not make intuitive recommendations. Depending on the provider you choose, there may also be limited choice in terms of the options on offer.

3) Choose a financial adviser or wealth manager

If you have a larger amount to invest, for example a six-figure inheritance or windfall, you could pay for the services of a financial adviser.

But you still need to decide what kind of advice you need and the goals you’re working towards. For example, are you investing with a particular event in mind, such as retirement?

You also need to decide your appetite for risk, how long you want to tie your money up for, and whether you need advice on different types of investment such as ones run according to ethical or environmental principles.

When you meet with an adviser, you should be given information including:

• Whether the advice is independent or restricted &#; restricted stocks to invest in uk an adviser is limited to the number of providers s/he can recommend. An independent adviser can access the whole market.
• Level of advice &#; are you looking for information to help inform a decision, or do you want an adviser to manage your investments?
• How much you’ll be charged &#; this may include an hourly rate, a set fee, a monthly retainer, or a percentage of the money being invested. Fees can vary so it’s worth shopping around.
• How your adviser is regulated &#; the firm should appear on a register published by the financial watchdog, the Financial Conduct Authority.

You can find out more information about financial advice from Citizens Advice. For lists of  independent and restricted advisers take a look at the Unbiased, Personal Finance Society and VouchedFor websites.

Inflation poses a serious threat to the value of our savings. If inflation is six per cent and the interest rate on your savings is one per cent, your money is losing five per cent of its real value, or spending power. With inflation now expected to exceed even the Bank of England’s per cent forecast peak this spring, and to remain high for quite a while as the impact of the Ukraine conflict feeds through into consumer prices, that situation isn’t going to improve quickly.

So cash Isas are a bit pointless?

It is essential to build up and maintain ebest investment securities good cash savings buffer before you think about doing other things with your money. But with inflation at per cent and rising, and the best cash Isas currently paying per cent for easy access and per cent for a one-year fix, it is a bleak outlook for cash savers.

With the personal savings allowance, basic rate taxpayers can receive interest payments of up to £1, a year tax free from a normal savings account, and higher rate taxpayers can receive £ of interest tax-free. With the best non-Isa savings accounts paying per cent easy access and per cent one-year fix, it would seem sensible for most people to use these for their cash savings and retain the option of using their Isa allowance for something else.

The latest government data showed that inabout 61 per cent of Isa contributions went into cash Isas – despite ultra-low interest rates on cash deposits – and about 36 per cent into stocks and shares. Although in terms of overall value of funds, investing Isas made up 51 per cent, which perhaps reflects their stronger growth potential. Earn your own money quotes Financial Conduct Authority has expressed concern that too many people are missing out on higher returns by hoarding cash.

So how do I use my Isa allowance?

Those stocks to invest in uk for the deposit on a home might look to a Lifetime Isa (Lisa) as the generous government top-ups on these will go a long way to compensating for the effects of inflation. But be aware of the rules and restrictions on how you access and use Lisa savings. You can pay a maximum of £4, into a Lisa in one tax year to get the maximum £1, top-up, so even if you do this, £16, of your Isa allowance will remain unused.

Whether you open a Lisa or not, if you are willing to think in the long term and leave your money untouched for several years, an investing, or stocks and shares, Isa is worth considering. Both the profits you make from the rising value of investments (capital gains) and the income you receive from dividends (also called yield) are protected from tax.

But isn’t now a crazy time to start investing?

Stock markets can be volatile over the short term. Over the medium to long term, however, they have a strong track i want to earn money online from home. While there is no guarantee that stock markets will rise, historical evidence is fairly clear that markets trend upwards over the long term.

The MSCI World Index of global developed market equities is currently about per cent above where it was five years ago, which breaks down into annualised returns of 11 per cent, and per cent above where it was 10 years ago, equivalent to annualised gains of about per cent. That means even after taking fees into account, £1, invested in a simple global equities tracker ten years ago would now be worth more than £3,

Despite this, it can still be intimidating to put a lump sum into stock market-based investments at a time when international conflict and potential economic shocks are causing market volatility.

So how do I get into investing without taking too many risks?

On top of the fundamental willingness to remain invested for five or more years, there are two main things the newbie investor can do to mitigate against risk:

a) Choose a ready made portfolio or a multi-asset fund, which will spread their money across a variety of assets including equities and bonds, and this diversification will hopefully mean that if equities suddenly fall, then other assets will help to stabilise your portfolio.

Most Isa platforms offer several of these, with a choice of how much growth and risk is targeted, which means that anxious investors can choose a cautious option that will have less committed to equities and more to “defensive” assets. Of course, a cautious approach will limit how much growth is achieved in good times.

b) Drip-feed into your investments with monthly contributions. By buying into the market at different levels each month you are helping to smooth out volatility. And when the stock market falls you have the benefit that you are picking up more shares (because they cost less), which in the long term could provide high returns.

It’s important to remember that you do not even have to invest right now to use your Isa allowance: you can fund your account with cash before the end of the tax year to bag some or all of the /22 allowance, and then either drip-feed that into investments, or just leave stocks to invest in uk there until you make your investment choices. If you don’t use your allowance, you lose it.

Adrian Lowery is personal finance analyst at Bestinvest.