Different types of investment strategies

Making sense of investments can feel overwhelming, but it doesn’t have to be. We’re here to break things down in a way that’s clear, friendly, and designed to help you make the best decisions for your future. Whether you’re planning for retirement, growing your savings, or exploring new opportunities, this guide will walk you through some of the most common options and how they might work for you.

What are investments?

Investments are ways to grow your money over time by putting it to work, whether that’s through buying shares in companies, lending to governments or businesses, or even investing in property. Every type of investment has its own benefits and risks, and the key is finding what suits your goals and comfort level.

Types of Investments

1. Stocks and Shares

Buying shares means you own a small piece of a company. When the company grows, the value of your shares can increase, and you might also get a share of their profits (dividends). Think of stocks as a way to be part of a company’s journey while aiming for growth.

Why choose stocks? Great for long-term growth if you’re comfortable with ups and downs in the market.

What’s the risk? Stock values can rise and fall, and is not suitable for short term investments

2. Bonds

With bonds, you’re essentially lending your money to a company or the government, and they pay you interest in return.

Why choose Bonds? They’re usually less risky than stocks and can provide steady, predictable income.

What’s the risk? If interest rates go up or the borrower struggles to pay, you could see losses.

3. Property

This could mean buying a house to rent out or investing in property funds that own multiple buildings.

Why choose property? It’s a tangible asset that can provide rental income and grow in value.

What’s the risk? Property prices can go down and selling can take time. If you only need some of your investment, you have to sell all of the property rather than just being able to take what you need.

4. ISAs (Individual Savings Accounts)

ISAs are a tax-friendly way to save or invest. You can choose from cash ISAs, which are like savings accounts, or stocks and shares ISAs, which invest your money.

Why choose ISAs? Your savings or investments grow free of tax, giving you more for your money.

What’s the risk? With a cash ISA, your money might not grow as fast as inflation. With stocks and shares ISAs, values can go down as well as up. You can also only invest £20,000 a year tax free into ISAs

5. Pensions

A pension is a long-term savings plan designed specifically for retirement. Contributions benefit from tax relief, which can help your money grow faster. Pensions are essentially a wrapper for other products, which is where your money is invested.

Why choose pensions? They’re essential for retirement planning and often come with contributions from your employer.

What’s the risk? You can’t access your money until retirement age, and investments can fluctuate.

Pensions are the cornerstone of securing your future.

6. Mutual Funds and ETFs

These pooled investment options let you spread your money across a variety of assets like stocks and bonds. However….

Why choose funds? They offer instant diversification and are managed by experts.

What’s the risk? The value of the underlying investments can go down.

Choosing what’s right for you

At Furnley House, we believe investing should feel empowering, not intimidating. Here’s how you can start:

Think about your goals. Are you saving for retirement, a home, or just trying to grow your wealth?

Understand your risk levels, Do you prefer safer options or are you okay with some risk for bigger rewards?
Ask for guidance. You don’t have to go it alone. We’re here to help you every step of the way.

Investing isn’t about fitting into a one-size-fits-all approach. It’s about finding what works for you. At Furnley House, we’re here to understand your unique needs and help you create a plan that makes sense for your life.

Want to take the first step? Get in touch with us today, and let’s talk about how we can help you achieve your financial goals.

The value of pensions and investments can fall as well as rise, and you could get back less than you invested.