Investing basics

All topics Investments Investing basics What is investing?

What is investing?

Investing is when you buy assets like stocks and funds with the hope that they increase in value over time. If they do, you can sell them down the line for a profit.

  • Stocks lets you own a piece of a company
  • Funds spread your money across a group a different companies

The main reason to start investing is to grow your money over time, because over the long term, investing returns have typically beaten the returns of cash savings. However, it’s important to note that the value of your investments can go down as well as up and you could get back less than you invest.

At Moneybox, you can invest through our range of investment accounts:

All of these accounts allow you to invest in tracker funds and exchange traded funds (ETFs), and for our Stocks & Shares ISA, you can also invest in US stocks. More info on our investment options can be found here.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

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