Once you’ve decided which account is right for you – either an Individual Savings Account (ISA), a Self Invested Personal Pension (SIPP), or an Investment Account – you will then need to choose which funds to invest in.
Different investment funds have different investment objectives and also carry different levels of risk. Therefore, before choosing your investments it makes sense to create an individual investment strategy by assessing your investment goals and your attitude to risk.
Ask yourself what you are looking to achieve from your investments? You can invest for capital growth, income, or a combination of the two.
Your attitude to risk will be affected by how long you intend to invest for and how comfortable you are with the fluctuations in the value of your investments.