Stocks, ETFs & Funds

Learn how different types of investments work and understand the role they can play in building a diversified portfolio.

Understanding Your Investment Options

Shares, ETFs and investment funds each offer different ways to invest your money. Understanding how they work can help you choose investments that match your financial goals, risk tolerance and time horizon.

A warm, inviting illustration of a person happily reviewing simple investment charts on a laptop at home.
A warm, inviting illustration of a person happily reviewing simple investment charts on a laptop at home.

Diversification

Long-Term Focus

Learn the principles of building wealth over time.

Understand how spreading investments can help manage risk.

FAQs

What are shares?

Shares represent ownership in a company. Their value can rise or fall depending on the company's performance and wider market conditions.

What is an ETF?

An Exchange Traded Fund (ETF) is a fund that holds a collection of investments and is bought and sold on a stock exchange like an individual share.

What is an investment fund?

Investment funds pool money from many investors to buy a diversified portfolio of assets, which is managed according to the fund's investment strategy.

ETFs trade throughout the day on a stock exchange, while many traditional investment funds are priced once each trading day.

What's the difference between ETFs and funds?
Why is diversification important?

Diversification spreads investments across different companies, sectors or asset classes to help reduce the impact of any single investment performing poorly.

Individual shares can offer higher potential returns but generally carry more risk. Funds and ETFs provide instant diversification, making them a popular choice for many long-term investors.

Should I choose individual shares or funds?
A bright illustrated chart showing different types of UK investments like shares, ETFs, and bonds stacked neatly.
A bright illustrated chart showing different types of UK investments like shares, ETFs, and bonds stacked neatly.