The investment choices you have once you’ve built up some savings

If you’re in a position where you’ve found yourself with some extra cash and are now looking to invest it, rather than keep it in the bank, you’ve come to the right place. Knowing where to start can be tricky to navigate and you’ll no doubt encounter a number of options. Here’s some information to help you decide where you can put your money in search of a return. So what are your options? Here are your choices with Moneybox.

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2 January 2025

Starting Options

These are a premade portfolio of funds that have been designed by experts as an ‘off the shelf’ investment option. That’s because they let you invest without having to pick your own funds or build your own portfolio. There are three Starting Options to choose from – Cautious, Balanced, and Adventurous – and each aims to give a different level of return in exchange for accepting a different level of risk.

Tracker funds

Also simply called ‘funds’, these ‘track’ or follow the price of a group of different companies. For example, an artificial intelligence tracker fund will track the stock price of a group of companies that focus on artificial intelligence. In doing so, you get diversified exposure to an entire sector with a single investment. There are also tracker funds for entire countries – for example, by investing in the FTSE 100, you’ll be following the performance of the 100 largest companies listed on UK stock exchanges.

Stocks

If you have a favourite company – like Amazon, Apple, Microsoft, or Tesla for example – you can invest in that individual company directly by purchasing its stock. This is different to buying fundsFunds, also called ‘tracker funds’, are financial instruments that have been set up to match or ‘track’ the price of a market index. Investing in a fund lets you get exposure to different financial assets like shares and bonds, without having to buy them directly., because that doesn’t let you own the company’s stock directly. However investing in individual stocksStocks, also known as shares or equities, represent units of ownership in a company. is higher risk than investing in funds. You may wish to spread your money across a few companies too – a single company’s stock value will be more volatile against micro factors compared to a few companies in different sectors or a fund.

A well-balanced investing portfolio will consider a little bit of everything. For example, a few funds for key areas or for things you’re interested in, alongside a few stocks of companies that you like. With Moneybox, you can customise your investment allocation at any time to access our full range of funds – explore our range today.

Explore investments

Key things to know about investing

An investment can pay you a higher return vs cash over the long-term, but investing comes with the risk of losing money. The higher the return, usually means the higher the risk.
Small differences in annual returns can be amplified when compounded over many years. The same goes for fees.
Even if you leave your money in cash, inflation will erode its value over time.
Building a balanced portfolio of investments means losses in any one area are more likely to be offset by gains elsewhere.

At Moneybox, you can start investing today. Open an account for as little as £1 per month plus 0.45% platform fee and get free withdrawals at any time. Why not take a look at your options to invest with Moneybox today.

Capital at risk. All investing should be long term. The value of your investments can go up and down, and you may get back less than you invest.

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.