How to choose a fund to invest in

Different styles of fund management

Different funds offer different levels of risk and potential rewards. Some fund managers adopt a cautious approach, trying to shelter investors from the worst of any stock market falls. Others are happy to take on riskier investment strategies in search of potential higher returns.

There are managers who look to add value by focusing on the bigger picture, identifying trends or reading the economic outlook before investing in areas they feel are most likely to benefit. Others place less importance on these wider influences and prefer to focus almost exclusively on the prospects for individual companies or investments.

With thousands of funds available, the choice can be daunting. That’s why we created the Wealth Shortlist to help narrow down the wide range on offer.

The Wealth Shortlist is for people who like to choose their own funds, and can help investors build well-balanced and diversified portfolios.

We continually monitor the list to make sure it only contains those funds our analysis indicates have the greatest performance potential.

VIEW OUR WEALTH SHORTLIST

Monthly investing or a lump sum?

One of the reasons for the popularity of funds is that they give investors access to a wide range of investments, and offer the benefit of an expert manager, without the need to invest large sums of money.

With Hargreaves Lansdown, you can invest as little as £100 into a fund as a lump sum, or set up a regular direct debit from just £25 per month.

Monthly investing has a number of benefits. Small regular investments can soon add up to a sizeable pot of money, and can help average out the highs and lows of the stock market. This takes the pressure off trying to time your investment correctly.

Please remember that investing involves risk and you could get back less than you invest.