Time to join the share game?

By THIS IS MONEY
Updated:

 

I keep hearing that now is the time to buy shares as the markets have fallen quite a lot. I have £2,000 of disposable income I want to invest. Which sectors will be a good investment, and where I should look for sound advice on what to invest in? MP, London.

Richard Banfield, senior analyst at Barclays Stockbrokers, says: There are a number of points you need to consider. Firstly, equity investment should be a long-term commitment - at least five years - so if there's any chance you may need this money soon, don't invest in shares.

Secondly, what is your investment objective: income, growth or a balance between the two?

Finally, what level of risk are you comfortable with? If you are happy to invest long-term, a unit trust or investment trust may be appropriate. They are professionally managed and enable you to spread your risk across the broad range of investments held within the fund without the cost of buying a large number of individual holdings. The type of investment trust or unit trust you chose will be determined by your answers to the second and third questions.

Without detailed knowledge of your personal circumstances we cannot give specific recommendations. Consider contacting an independent financial adviser (IFA) who will make a recommendation based on your personal circumstances, investment objective and attitude towards risk. Depending on your tax position, you may also consider investing in a fund within a tax-free Isa (Individual Savings Account). Again, your IFA should be able to assist you. Click here for This Is Money's 'Find and Adviser' feature to find an IFA near you.

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