Investment

Today, I want to share how you can buy the best REIT ETFs in one single investment. I have previously shared a post where I listed the biggest REITs quoted on the UK Stock exchange. Real Estate Investment Trusts (REITs) are companies that allow you to invest in the property sector in an easy, hassle-free, way with any amount of money you have. They allow you to invest in multiple properties ranging from residential homes, retail parks, leisure centers to commercial warehouses, and health care structures through a single investment in one stroke!       With REITs, you still benefit from the same revenue streams as you would if you had done a traditional real estate investment yields in terms of the appreciation and rental income without the hassle, capital outlay, and less time is committed to this investment. The key point is that your REIT investment is not only 100% passive, but you can get started with as little as £100. However, finding the REIT that suits your long-term investing goals can be difficult and this is where REIT ETFs come in.   What are REIT ETFs? ETFs offer exposure to multiple stocks, shares, and funds with one investment so that you can ensure that you have a highly diversified portfolio, rather than relying on the performance of one or two of REITs. REIT ETFs helps you invest in a wide range of properties through REITs, thereby having a fully diversified property portfolio with lower risk. They are super-convenient to invest in simply because they are quoted on the stock exchange. You can invest at the click of a button from any trading platform you registered in. This also means that you can exit your position at any time; subsequently ensuring that your funds are locked up. They are passively managed because they are tracing the performance of indexed REITs such that you pay lesser fees than if you were investing in an actively managed mutual fund that has a fund manager behind the desk. So here is a list of the best UK REITs ETFs for 2022:   1. iShares UK Property UCITS ETF This is the Best UK REIT for the Domestic Real Estate Industry. If you would love to invest in the domestic real estate industry, you might want to consider the iShares UK Property UCITS ETF. The iShares UK Property UCITS ETF is listed on the London Stock Exchange. It is a single-country ETF that focuses on growth from diversified exposure to the UK property market and tracks the performance of the FTSE EPRA/NAREIT United Kingdom Index which is composed of REITs and property companies that are investing in the UK. 27% of the fund is invested in diversified REITs, 10.6% in office space, 9.7% in residential, 7.6% in real estate holding and development and 5.7% in retail premises. How do they select their investments?… This particular ETF offers a good blend of individual UK real estate investment trusts and blue-chip stocks. Regarding the latter, this will include a selection of UK companies that are actively involved in the domestic real estate scene. For example, there is a 5.76% holding in UNITE Group plc listed on the London Stock Exchange with a market capitalization of £3.75 billion. UNITE Group is a market leader in the student accommodation arena. At the other end of the spectrum for this particular ETF, the iShares UK Property UCITS ETF also holds a basket of UK-based REITs. This includes everything from the Assura REIT, Tritax Big Box REIT, Primary Health Properties REIT, and Land Securities Group REIT. This means you can invest in a large number of UK REITs, and you will be well-diversified across most sectors of the REIT arena. In 2021, the ETF returned 21%, Its expense ratio charged by iShares on this REIT is 0.40% and comes with a tracking difference of -0.11%. The fund has a UCITS risk factor of 5, where 1 is the lowest and 7 is the highest risk. It has a good MSCI ESG Quality Score (environmental, social, and governance) of 6.8, with 10 being the highest score available. Dividends – which will cover your share of rental payments are distributed quarterly as required by law. You can buy this fund through your ISA (Individual savings account) and SIPP (Self-invested Personal Pension) account. The top five holdings are: 1. Segro REIT 2. Land Securities REIT 3. British Land REIT 4. Unite Group 5. Derwent London REIT   2. Xtrackers FTSE EPRA/NAREIT Developed Europe ex UK Real Estate UCITS ETF (XREA) This particular REIT is invested in Europe excluding the UK, and it is a great REIT because it reinvests its dividends back into the business and allows you to invest in wider Europe. So if you have invested in the UK through the i-shares ETF, you can then invest in the rest of Europe with this particular ETF. The net asset value is £5 million, so this is a small fund. This fund also brings an element of forex hedging to your portfolio because around 70% of its assets are denominated in euros. So when the UK fund is doing well, you have the i-shares for that, and when the Europe fund is doing well, you have the XREA for that. The best European fund provides diverse exposure to European stocks in the real estate sector (excluding the UK) by investing in eligible listed real estate companies and REITs. XREA tracks the performance of the FTSE EPRA/NAREIT Developed Europe Ex UK Capped Net Return Index, and it provides physical exposure to the underlying assets of the index. In 2021,it returned 26.5% and year to date returned 2.5%. Its expense ratio is 0.33% and tracking difference is 0.31%. It is invested in countries like Germany (29%), Sweden (19%), France (15%), and Switzerland (9%). Instead of distributing them to investors, this ETF reinvests dividends and trades on the Deutsche Borse stock exchange. Dividend Yield: 3.52% The top 5 holdings are: 1. Vonovia

As someone on the journey to financial freedom, you are likely to encounter words you do not understand. Checking a dictionary or using a random google search may not give you an in-depth understanding of these words. Once you get familiar with these terms, investing would be much easier with less intimidation. I will be explaining these investment terms to you so that you will never forget, and the next time somebody mentions them to you, you will understand what they are talking about, and you can contribute to that conversation.   1. Interest Rate The interest rate can be in two ways; the cost of the money you have borrowed or the benefit of the one you have deposited. When you borrow money, there is a certain cost or charge for borrowing that money, and that charge is called an interest rate. The value of the interest rate on the money you have borrowed depends on how much you borrow, how long you borrow it, and the frequency of the compounding, that is how frequently your lender wants to compound your charges. On the other hand, if it is interest on deposit, the interest rate would be your benefit for depositing that money, that is how much the bank or whoever you have deposited the money with wants to pay you for holding on to your money.   2. Credit Rating Credit rating is an evaluation of your credit risk, of what kind of debtor or borrower you will be. Your credit rating tells your lender whether you will be a good debtor who will pay back on time or whether you will be a bad debtor. It measures your risk showing the likelihood of you defaulting on a loan or a credit card. It does not tell your lender how much you have or earn; it only reveals your risk level. If you plan to apply for credit, the kind of credit you would get is often influenced by your credit rating because it sends a message to your lender telling them what kind of risk you are as a borrower.   3. Overdraft An overdraft is what you get when your bank allows you to spend beyond what you have; that extra spending allowance you have on your account is beyond zero. It is you borrowing from your bank on your account. When your account gets to zero, your bank allows you to go into negatives (like -£100) which they usually charge. Many banks will give you a free overdraft value of about £50, £100, and if you go beyond that, they charge you to use the extra. The overdraft assumes that money would flow back into your account and replace whatever you have spent in terms so overdraft. In the UK, banks charge heavily for overdrafts; they charge daily. I discourage people from using overdrafts because you will eventually spend more. If you have spent an overdraft of £2000, your monthly charge can go up as much as £100 in many banks.   4. Bear Market You may have heard that a market is bearish before and walk away because you do not understand it. Or perhaps you keep mixing up the bearish and bullish market. A bearish market means that the value of investments in stocks, shares, and other instruments on the market has dropped considerably as much as 20% from what they regularly are. A bear market is usually due to economic factors or investors losing faith in some instruments due to certain occurrences in the marketplace. It means the value of things has dropped. A bearish market is a good time to invest in the marketplace. I am not one to advise you to game the market and wait for it to be bearish before investing, but it is advisable to invest regularly in the stock market. However, when the market is in a bear market state, it is a great time to invest because what you are doing is that you are buying the dip. Think of a soft cuddly teddy bear as synonymous with a bearish market; soft, weak, and harmless.   5. Bull Market Think of a bull- aggressive, strong, pushy, and powerful; something you want to hold on to but not necessarily go into. It is a strong market where investments are at a high because the economy is doing well. In a bull market, investors are confident about the instrument in the market. ETFs, bonds, stocks, and shares are all doing well with about 20% above the norm. It is a great time to sell, not a great time to buy. It is also a great time to hold on to instruments you already have.   6. Compound Interest Compound interest is the magic investing word that has the power to make you a millionaire; it simply means when the interest on your deposit yields interest. If you invest money in a particular instrument and it is doing well, you get interest on that deposit which is the benefit of putting your funds. When that interest yields another interest, that is compound interest. For instance, if you put £200 into an investment and the £200 yields £20pounds which is 10%, your money becomes £220. Then your £220 also yields a 10% interest making it £242, and it keeps growing with compound interest. When you take on bad debt like a high-interest debit card and the principle on the card has an interest, and you do not pay it back on time, it will also keep yielding interest for your lender. In this case, your lender is the one benefiting from compound interest.   7. Opportunity Cost Opportunity cost is simply what you give up in exchange for something else. Every time you make a financial choice above the other, that is an opportunity cost. If you order pizza, that is £20 that you could have put into an investment. That investment that you left and chose pizza

Whether you are new to investing or you are a more experienced investor, you may have some investment questions. As a finance expert and investment coach, I often receive various investment questions from people asking me the how, why, and what. Here are the answers to your top ten investment questions.   1. What should I invest in? You should invest in commodities that will give you returns and profit over a long period. Invest in articles, products and materials, and things designed to increase in value over several years. These products are most likely to increase in value due to specific factors such as performance, use, and societal demands. You can invest in your business, stocks and shares of existing companies, gold, rare metals, and commodities. Agriculture, startups, vintage, and goods are also great places to invest. What you invest in depends on your risk appetite, investment goals, and what you want to get out of investing. I am currently not investing in NFTs because I do not understand them enough to know when to buy or sell. Most importantly, I would say invest in what you understand. Go for commodities that are structured to yield a profit over a long period   2. How should I Invest? For those interested in investing in stocks and shares, you may be wondering how to start It is easier to invest in stock and shares these days than before when a stockbroker had to help you buy them. Due to technology and relaxed government laws, the everyday man can invest in stocks and shares through investment platforms. Investment platforms are like supermarkets that sell stocks and shares. You invest in stocks and shares by registering on these platforms and finding the stocks or shares you want to buy. The beauty of these platforms is that you do not need to be resident in the country where they are situated. You can invest as long as the investment platform allows a resident of your country to invest money through them. Some well-recognized investment platforms in the UK are Hargreaves Lansdown, Vanguard investors, AJ Bell You Invest, etc. Simply do a google search for investment platforms in the country you live in. In Nigeria, you have platforms like Bamboo Invest and Passfolio.   3. Can I sell My Shares Anytime I Want? As long as you bought the stocks and shares of a company quoted on a recognized stock exchange, you can sell anytime. All you have to do is click on the sell button on the platform through which you bought your shares, and they will sell them for you at the day’s price. The platform would not sell your stocks and shares at the price you bought them, but they will sell them at the price the stock or shares are going for on the day you intend to sell them. It is advisable to hold on to your stocks and shares when you buy them. I do not encourage people to keep buying and selling their stocks and shares because the idea of investing should be to yield profits, grow wealth, and befit from the company’s growth in the long term. However, if you choose to sell your stocks and shares because you need the money or no longer believe in that particular company’s performance, you can sell them anytime. You can sell as long as the company is quoted on a recognized stock exchange like the London stock exchange, new York stock exchange, or NASDAQ.   4. What are Funds and How do I Buy Them? A fund could be a mutual fund or an exchange-traded fund (ETF). A mutual fund is different from an exchange-traded fund in that mutual funds are not traded on the stock exchange. Funds are simply a basket containing a specific number of stocks and shares or commodities put together by a fund manager. When you purchase a fund, you are technically investing in all the commodities in the basket. Some funds are technology funds that invest in tech companies, while some invests in the top 500 companies.   5. Are Investment Platforms Banks? Investment platforms are not banks in that they do not offer you a chequebook. These platforms are not where you can transact business, pay people for services or accept funds on investment platforms. An investment platform allows you to invest and access stocks and shares ISAs, cash ISAs, lifetime ISAS, funds, trusts, and even real estate. You can invest in all sorts of commodities through an investment platform. As the name suggests, an investment platform is for you to open and fund your investment accounts.   6. Are Investment Platforms Safe? This is one of the commonly asked investment questions I have received of recent. I understand why you are uncertain about investment platforms being safe, especially if you are worried that they have got all your money even though they are not a bank. Well, investment platforms are regulated by the FCSE (federal regulatory body in the UK), and your funds are protected, so if anything happens to your money up to 75000 pounds, the British government will refund that money to you. You must check that the investment platform you are using is regulated and ensure that there is provision for that platform to pay your money back from the government if it collapses. Avoid apps and platforms that have not sought regulation or licensing from the government. Make sure that your investment platform has regulatory compliance.   7. Is Buying Shares the Same as Trading? Buying shares for long-term investment is not the same as trading because trading is a short-term investment. You are buying and selling when you trade. Trading is when you are trying to buy low and sell high. For me, trading is as close to gambling as you can get in investing because it is a high-risk investment. It is different from long-term investing, where you buy stocks and shares and hold

Investing in stocks is the easiest and convenient way to invest in the stock market. Today, I will be sharing six investment funds you need to be looking at buying in order to build wealth.   What is a fund?… A fund is a basket of commodities through which you can invest in a certain number of commodities; it is an easy and convenient way to invest in the stock market. Investing in a fund means you are simply investing in all of the content of that fund. If an investor buys a fund that is invested in twenty items; such investor is indirectly also invested in the twenty items within the fund. It is a cheap way to invest because you can simply pay one fee to buy a single fund; instead of paying individual fees to buy stocks and shares. Buying funds is cheaper because majority of them track indexes which also mean they are not actively managed. You get to pay a lesser fee than if you are buying actively managed stocks and shares. So what are these six funds you should be buying this year?   Vanguard S&P500 ETF The Vanguard S&P500 ETF is a low-cost fund based on the S&P 500. It is invested in the stocks that make up the S&P500 index. The S&P500 is a US index representing 500 of the largest US companies; and buying it means that you are investing in the 500 largest US companies in one fair slope. The goal of the Vanguard S&P500 ETF is to closely track the return of the S&P500 index; considered to be a gauge of overall US stock returns. This fund offers a high potential for investment growth. Share value rises and falls more sharply than funds that hold bonds; because it has a little more risk than bonds. Therefore, it is a more appropriate investment for long-term goals where your money’s growth is essential. So if you want to build wealth long-term, the vanguard S&P500 ETF is the one for you. If you had put in 10,000 dollars in 2016, your money would be worth a little over 20,000 dollars today; that is why you want to be investing in this fund.   Fidelity 500 Index Fund (FXAIX). The Fidelity 500 Index Fund (FXAIX) is an open-ended investment fund that seeks to provide investment result; which corresponds to the total return performance of common stocks publicly traded in the united states. Common stocks publicly traded in the united states include the 500 largest companies and a little more. The FXAIX fund usually invests at least 80% of its asset in common stocks including the S&P 500 funds and a few more funds. Its top investments are Apple, Microsoft, Amazon, Facebook, and Tesla. If you had put in 10,000 dollars in 2016, your money would be worth a little over 20,000 dollars today. Risk-wise, the Fidelity 500 Index Fund is a well-balanced fund that gives returns commensurate with a medium level of risk. You must compare your risk appetite with the risk level of whatever fund you are buying so that there is no disconnect between your risk level and the fund you are trying to buy. So if you have a low-risk appetite, a medium fund might not necessarily be the one for you.   Baillie Gifford American Fund The Baillie Gifford American Fund is a firm favorite of mine, and even though it has not performed well in recent years, I am still rooting for it. The fund is a US large-cap American growth equity fund benchmarked against the S&P500. Although the Baillie Gifford American Fund is a performing fund, it is costs a little more than passively managed funds like vanguard S&P500 ETF. It was the best performing fund in 2020; the pandemic year. This fund invests about 90% of its content in shares of US companies. Its stock holdings include Shopify, Amazon, Wayfair, and Rocco; it endeavors to invest 98.5% of its holdings in stocks and then holds the rest in cash. Investors need to bear in mind that this fund is heavily invested in stocks which increases its risk levels. The Baillie Gifford American Fund is a firm favorite of mine because if you had put in 10,000 dollars in 2016, your money would be worth a little over 42,000 dollars today.   Vanguard FTSE250 UCITS ETF The Vanguard FTSE250 UCITS ETF is a fund that is invested in the FTSE250 companies where it employs a passive management or indexing investment approach and so is not actively managed. Through the physical acquisition of securities, it seeks to track the performance of the FTSE250 index. This index comprises midsized companies in the UK. The base currency of this fund is the British pound, and so it is domiciled in the UK. This Vanguard FTSE250 UCITS ETF is an income fund which means that income from the fund is paid quarterly, so it is not appropriate for short-term investment. Etf shares are often listed on one or more stock exchanges, but this particular ETF is listed on the London stock exchange, which indicates that it is easier to buy and sell. As long as the stock market is open, you will always be aware of the price of Vanguard FTSE250 UCITS ETF, and its shares can be bought or sold daily except on bank holidays. This fund is considered to have a risk rating of 6 out of 7 which is somewhat high.   Ishares Core FTSE 100 UCITS ETF The Ishares Core FTSE 100 UCITS ETF is a fund that tracks the FTSE 100, and the FTSE 100 are the 100 largest UK stocks by full market value. This fund is an exchange-traded fund which means it is traded on the stock market; and it aims to track the FTSE index as closely as possible. It invests in physical index securities, and offers flexible and easy access to a wide range of market and asset classes. Buying this

Investing is a major part of building wealth and achieving a bulletproof life that is secure from failure and setbacks. Investing allows you to live your dream life. But there are some things you need to do before investing. A well-planned investment process not only frees you of any investment worries in the near or distant future but it also helps you attain those investment goals. Build an Emergency Fund. Your emergency pot is the savings that will be there for you when you have emergencies or when something in life happens that you are not expecting or planning for. Like when your boiler packs up or when your car develops a fault. These emergencies need to be taken care of, and that is where your emergency fund comes in. If you start investing without an emergency fund, you may get into debt when emergencies happen. You may also find yourself using up your savings or running a helter-skelter looking for where to borrow money. Another emergency that can happen is losing your job; this is an emergency you do not plan, but when it happens, you need to have funds to deal with it. How much should you have in your emergency fund? Some say six months, while Dave Ramsey says a monthly income at the minimum. However, You can save up to six months of your income, but you need to start with three months. An emergency fund is one thing you should have before you start investing at all. Pay Off High-Interest Debt. When you invest, you aim to make returns. High investments pay between 1 -200% of your money, but a lot of investments usually pay less than 20% in the first year. Some even pay as low as 3 to 5% in the first year of investing before compound interest kicks; that is why you need to pay off high-interest debt first. Any debt with an interest rate of over 10% per annum is a high-interest debt and would take more from you than any investment would give you that year. So, focus on paying off this debt first. Besides, what is the point of investing if your high-interest debt is going to take more than your interest returns? Start Paying Other Debts. I am not about living a debt-full life but a debt-free life. Arrange a process for paying off all other debt; set up a monthly payment to your lenders, negotiate your payment options, and arrange a payment plan. You also need to be aware of your pay-off date, that is when you are likely to be debt-free from each particular debt you have. Put the Right Insurance in Place. Many of us ignore insurance because we do not believe in it or simply do not care about it. We think it does not matter, while in fact, it does. Life insurance is one of the most important insurances to get, especially if you have children. You do not want them hanging around without any ray of hope if something suddenly happens to you. Another insurance I usually advise people to have is home insurance, especially for home property owners. If anything happens to your property, you can rely on your insurance. Some home insurance even has boiler coverage. If your house gets burgled your home insurance should cover it, depending on your insurance plan. Health insurance is the third insurance that I always preach about. In the UK, NHS is fantastic because it gets things done for us; you can see your GP anytime and can check into the hospital anytime. Having health insurance is sometimes the difference between an early diagnosis and a late diagnosis of a life-threatening condition. The NHS is quite burdened because of the queues and waiting time, so I advise that you go the extra step of getting health insurance, especially if you are over forty. Make Retirement Plans. Do you have a pension? Have you put one in place? Are you part of your organization’s pension program? If the answer to these questions is a no, you need to get proactive about your retirement. The truth is that because of medical advancement, a lot of us are going to be around for a very long time. So when we retire at age 60 or 65 without any financial plan, what would you fall back on? How will you survive beyond that age? If you do not have a plan, see how you can join your organization’s pension program. If you are self-employed, get private pensions. In the UK, we have the self-invested pension program (SIPP), which you can join through investment platforms. Know Your Cash Flow. You need to know how much money you earn monthly/weekly and how much of that income is spent on your bills, expenses, and debt. To know your cash flow, you need to have a budget. Start budgeting your money, tracking your expenses, and understanding your cash flow; this helps you know how much you have to invest. Investing is not a one-off thing but one you need to do consistently and repeatedly, which requires you to know your cash flow. Understanding your cash flow gives you an idea of how much you can spare monthly for investment? Know Your Investment Goals. You need to ask yourself why you want to invest, how long you want to invest, and what you expect to get out of the investment. It is very important to sit down with yourself and have this conversation so you can get the answer to these questions. Understanding what your investment goals are is one thing you should do before investing. Educate Yourself. Before you start investing, you need to educate yourself. Do your research. Know the investment instrument and platforms available. Read about the fees, tax implications, and pros and cons. You can educate yourself by watching videos like those on my Youtube channel, reading personal finance books, or attending one-on-one coaching sessions with certified finance

A thousand pounds may not seem like much, but you have been disciplined enough to save it, and now you are ready to invest. I applaud you for that! Your £1,000 is a fantastic start in building toward long-term financial freedom. If you are unsure how to invest your first £1000, this post is for you. Today I will share how I would invest my first £1000 if I were in your shoes. But before then, let’s discuss your investment goals and risk appetite. Identify your Investment Goal Before starting your investment journey, it is essential to identify your investment goals. The first questions you want to ask yourself to identify your investment goals are as follows: Why do I want to invest the money, and what do I want to achieve with the money? Am I looking to get something back in terms of income from this £1000, or am I looking to grow wealth for the future? Is it the beginning of my investing journey? Am I going to be adding more to it so that I can grow wealth? Is this towards my pension and retirement? These questions would help you to identify your investment goals. Know Your Risk Appetite You would also consider if you like low-risk, medium-risk, or high-risk investments. For example, If the £1000 reduces in value which can happen with investments, would you be crying and depressed? If the answer is yes, then you have a low-risk appetite. For medium-risk appetite persons, you are somewhere in the middle. You have the mindset that even if you lose a little bit of the £1000, it is not the end of the world; yet you would rather not lose everything. You would like to make some decent returns on your £1000. On the other hand, high-risk persons do not care much if they lose money. They believe that even if they lose it, they can make another one again. Therefore, they look for high-risk investments that can make higher returns in a short time. Once you know your investment goals and risk appetite, it is time to start investing. So if I were in your shoes, how would I be investing my first £1000? Take a look at these scenarios.   Scenario 1: Low-risk appetite with an Investment goal to grow wealth In this case, I would put 70% of the money into bonds and 30% into funds. So out of the 70% for bonds which is £700, £500 will go into government bonds, and the remaining £200 will go into corporate bonds. Government bonds in the UK are called Gilts. It means you are loaning money out to the UK government. It is a safe investment because you will not likely lose your money. You can buy gilts on many government platforms in the UK like Vanguard, Hargreaves Lansdown, AJ Bell Youinvest, etc. Then I would put the remaining £300 into ETFs (Exchange Traded Funds). ETFs are funds traded on the stock exchange, allowing you to invest in various companies. Investing in ETFs helps you to spread your risk. I will go for an Exchange Traded Fund that tracks a particular index like the FTSE 100 (an index in the UK that follows the top 100 companies operating in the UK). I could also go for an ETF that tracks the S&P 500 (an index that tracks the top 500 companies in the UK).   Scenario 2: Medium-risk appetite looking to grow wealth In this scenario, I would put £500 of that £1000 into bonds and the remaining £500 into funds. While putting my money into funds, I would ensure some goes into Exchange-traded funds and some into mutual funds. Mutual funds are not traded on the stock exchange. Still, they are also funds like ETFs that allow you to invest across different companies. So I will put £200 in mutual funds, and £300 will go to ETFs. Out of the £500 allocated to bonds, I would put £300 into corporate bonds and £200 into government bonds.   Scenario 3: High-risk appetite looking to grow wealth In this case, I will put 80% of my money into funds and 20% into bonds. So for the 80% allocated to funds, I will put £600 into mutual funds, and £200 will go into ETFs. Then I will put the remaining last £200 into corporate bonds.   Scenario 4: Pension goals Suppose my investment goals are majorly for retirement purposes. In that case, I will put all £1000 into investments via my Self-Invested Personal Pension (SIPP) account so that the money will no longer be accessible to me. The money will always remain in my pension account even if I sell the investment. The Self-Invested Personal Pension (SIPP) account is the best if you want to invest your first £1000 into a paper investment to prepare for your pension years.   Photo by Edu Carvalho on Pexels.com While investing towards retirement, do not forget to follow still the low-risk, medium-risk, and high-risk appetite theories.   About stocks and shares… You may be wondering why I have not mentioned stocks and shares. Well, the answer is simple. £1000 is not a lot of money; if I had to put that money into individual companies, one or two companies would wipe away all of my money. For instance, Amazon shares are going for over €3000 while Tesla shares are over €600. So investing my £1000 in these companies will either mean I won’t be able to buy any shares at all or end up with one or two units of shares. However, If I do it through funds, I can spread myself across different shocks and shares, thereby reducing my risk exposure. And that is why I have chosen to only invest in funds and bonds. I hope I have given you an insight into how you can invest your first £1000. It doesn’t even have to be your first £1000. It could just be the £1000 you