Essential questions

With so much to choose from, the world of investing can be confusing at times. To help, it's important that you define your investment goal and understand your own risk profile. Take a look at the questions below to help you get started.

  • All investments carry a trade-off between risk and reward. The more risk you’re willing to take, the greater the opportunity for significant capital growth, and unfortunately, the  greater the scope for losses. For example, if you’re nearing retirement, you may want a lower risk approach, to lessen the possibility of your final retirement pot being eroded. Alternatively, if you don’t need to access your money for some years, you may prefer a higher risk approach, knowing you can adjust your strategy over time.

    BlackRock offer funds that span right across the risk spectrum.

    Learn about differing asset classes here

  • Your reasons for investing, e.g. school fees, retirement income or a second home can influence how long you invest for. It’s important to know your timescale. One to three years? Three to five years? Five years or more?

  • Your choice of fund will depend on whether you want your savings to increase (in other words, give you capital growth) or give you regular payments (that’s to say, a steady income). Generally speaking, younger investors are normally seeking to accumulate wealth and will be primarily interested in capital growth. By contrast, older investors often rely on the income from their investments to finance some of their everyday spending, and will want that income to be as high as possible. Some investors may prefer a balance of both growth and income.

    BlackRock has a range of equity funds focused on delivering capital growth and a selection of equity income funds that aim for income and long-term capital growth as well as a range of bond funds that aim to produce a high level of income.

  • It’s important to decide on the amount and frequency of your investment. Maybe you have a lump sum from an inheritance, or the disposal of property. Or you’re looking to invest a regular amount from your salary. Or perhaps you’d prefer to make irregular ad hoc payments. Your final decision is a balance of what’s affordable within the overall scope of your finances.

  • A good way to minimise the amount of tax you pay is to invest in an ISA (Individual Savings Account). ISAs offer investors the ability to roll up returns that haven’t had tax deducted, a compounding effect which can prove very powerful, especially over the long-term. Furthermore, you don’t have to include any gains on ISA investments on your Tax Return as they are a tax efficient way of investing.

    You can open a new ISA in each tax year.

  • Where the material refers to a particular tax treatment, the material must prominently state that the "Tax treatment depends on the individual circumstances and may be subject to change in the future."

    Experienced investors may wish to apply their own skill and judgement when making their fund choice. Others consider it wise to consult an independent financial adviser. Indeed, many lifelong investors find it valuable to compare notes with a professional who has access to the most up to date market information. There are also investors who are confident in their choice of investment management company, but prefer to have their precise portfolio of funds chosen on their behalf.

    If you would like to use a professional financial adviser, visit getting advice for more information.

Capital at risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. 
The figures shown on this page are fictional examples to explain the types of investments you may consider. Past Performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product or strategy.