Three must-dos for first time ISA investors

23rd March 2015


With just over a week to go before the end of tax-year deadline Adrian Lowcock, head of investing at AXA Wealth look at the three major must-dos for first time investors…

1. Have a plan

Before you invest, set yourself a plan, write down what your objectives and aims are from your investments, how long you aim to invest for and if you will be investing more money each year.  Review the plan and fine-tune it adding in your ability to tolerate risk and revisit this plan every time you consider changing your investments or making new ones.

2. Choose the right platform

First time investors are spoilt for choice with platforms at the moment, and trying to compare one with another can be complicated and what may suit first time investors now may not suit them in the future. So pick a platform that does what you need – If you are only looking for funds, as opposed to individual shares, inside your ISA then all you need is one that offers this. Make sure the platform doesn’t charge any exit fees, as this means if you choose to leave and move to a platform more suitable to your needs you can.

3. Diversify your investment

Often first time investors are attracted to individual shares having seen or heard about companies where other investors have had success.  While such companies do exist, they are not common and most investors have plenty more disappointments they don’t talk about. Instead first time investors (and experienced investors for that matter) can benefit from using expert fund managers who have the experience and will provide diversification through their funds.

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