The stock market seems to have picked up again and I'd like to start investing. Is there any relatively safe way to invest?
All investment involves risk to your money, and intelligent investing is all about establishing just how much risk you are taking. The more risk you take with your money, the higher the potential for future rewards. If anyone offers you a low risk high return investment opportunity then run a mile. This sort of thing simply doesn't exist. Taking less risk with your investment restricts your opportunity for long term growth.
A good way to reduce the level of risk you are taking with your investments is to avoid putting all of your eggs in one basket. Investing money in a single asset class (such as the stock market) is a sure fire way of losing money if that asset class drops in value. Instead, consider the four main asset classes - cash, fixed interest, property and shares (equities). By investing in four asset classes rather than one you are diversifying your investment and this can reduce the level of risk you take without meaning you miss out on all of the potential upside
(Information is intended for guidance only and is offered without any legal responsibility. None of the information provided constitutes any form of recommendation and is not intended to be relied upon by you in making any investment decision. You should always obtain independent professional financial advice before making any investment decisions).