Why invest your money?
Investing can be a great way to prepare for your financial future while enjoying some great benefits to help you grow your savings.
With interest rates at record lows and inflation causing you to lose some of the interest you do earn, investing has the potential to provide much better returns than a traditional savings account with your high street bank.
Plan for your future
Investing can help you secure and plan for your financial future. Whether you're focused on retirement, a new house, starting a family or you're just looking to save there are several different products that could suit your needs.
Some investment products can help to protect your savings from income or capitals gains tax, or offer tax relief on the contributions you've made - it's time to start making your money work harder for you.
How does investing work?
When you invest with evestor, you choose a portfolio to suit your risk appetite. Each portfolio contains a range of ‘index funds’. An index fund is essentially a big pot of different investors' money. Depending on the type of fund, that money will then be used to purchase stakes in property, government bonds and shares in companies across the world.
Index funds are a form of passive investment. This means they track a specific market (like the FTSE 100 OR S&P 500) and try to replicate its performance by purchasing shares in the companies inside that market. Active funds however, require a fund manager to actively pick and choose the investments that they believe will beat the market, not just track it. Often, active funds are no more successful than passive funds but are likely to cost you a lot more in fees due to the cost of employing fund managers and their teams. That’s why we believe in a passive investment strategy.
Holding money in cash is almost risk free, although it does limit returns. We use cash to help lower the risk of our more cautious portfolios.
We invest in property through Real Estate Investment Trusts (REITs) index funds. These can include access to the rent on apartment buildings, shopping malls and offices.
Organisations may issues bonds, a form of debt, to fund their growth, these are usually lower risk investments than equities, as the holder will know what return to expect.
Businesses can offer equity to fund growth, giving the investor the opportunity to share in the company's future earnings
Is investing risky?
You may already know that investing your money carries more risk than leaving it in a savings or current account. At evestor, we offer three different risk portfolios to ensure everyone who invests with us feels comfortable and has a risk level to suit their investment goals, experience and capacity for loss.
Our lowest risk portfolio which keeps a high proportion of your investment in cash to help lower the overall investment risk, but this does have the lowest potential returns of our funds.
- Cash - 22%
- Equities - 24%
- Property - 0%
- Fixed Interest - 54%
Our medium risk portfolio which provides a balanced mix of assets, including low and high risk financial assets, to provide the potential for good returns.
- Cash - 6%
- Equities - 61%
- Property - 5%
- Fixed Interest - 28%
Our highest risk portfolio which invests mostly in equities, to give the greatest potential for positive returns, however it also has the greatest risk of capital losses.
- Cash - 3%
- Equities - 89%
- Property - 5%
- Fixed Interest - 3%
It is widely accepted that a portfolio needs to include 16 different investments or more to be considered diversified. Diversification means that your risk is well spread across different types of assets, in different companies in different locations - think of the phrase 'don't put all your eggs in one basket'.
Our funds are currently invested in over 2,500 different companies in 75 different countries, so we’re very highly diversified.
What products could I invest in?
At evestor, we offer three products - a Self-Invested Personal Pension, Stocks and Shares ISA and General Investment Account.
- Investment Account
Our simple and easy to use Stocks and Shares ISA can help you grow your savings whilst protecting your money from tax. ISAs are a great way to invest for medium to long term goals.Tell Me More
Our Self-invested Personal Pension is a great way to prepare for your retirement, with tax relief benefits and a large annual and lifetime allowance.Tell Me More
Our General Investment Account (GIA) boasts unlimited, hassle free investing for medium to long term goals.Tell Me More
What will investing cost me?
Investing your money does come with some cost. Fees are usually calculated as a percentage of the money you invest and can vary significantly across different advisers - some may even charge you an upfront fee.
Here at evestor, we're helping to make financial advice affordable and accessible to everyone. This is why we're committed to keeping our fees as low and as transparent as possible.
- Less than 0.53% annually
- No upfront cost
- No minimum - invest from as little as £1
Should I invest my money?
Investing can be a great way to grow your money, but it's not for everyone.
If you're not sure what's best for you, we can give you a free personalised recommendation. We're always honest and will only recommend investing if it's in your best interests. Find out more about our free financial advice – available from the comfort of your own home.