Investment growth plan –

Young people have a major advantage when it comes to investing: time is on their side.

I have been involved in investing for 36 years but asked recently how a young person might approach being a first time investor in 2017, I paused for thought.

The sheer range of options can be overwhelming. If you don’t understand the jargon, where to start?

Save for a rainy day

My first tip is to put aside a “rainy day” pot before investing. Being an investor can carry higher risks and you may need fast access to cash. We typically recommend at least three months’ salary. This will also cut the chances of you reacting too sensitively to unpredictable changes in the economy.

Time is your friend

Time is your greatest asset. It’s easy to underestimate the impact of compound interest. This is when the money you make snowballs over time as you gain interest not just on your original investment but also on the money it picks up along the way. Time can also help compensate for the risks of investing.

I have seen three major financial crashes, and in each case the markets eventually bounced back. While past performance is not an indicator of the future, it is easier to ride out the peaks and troughs if you invest over the long term.

Stable investments

Young investors can be put off by stocks and shares’ unpredictability – but there are other more stable investments. Government bonds, for example, allow you to loan money to the government in return for regular payments. You are almost guaranteed payments and money back, but there is less chance of earning a high return.

Tracking an index

There are other options for younger people who don’t have the time or confidence to research. Tracker funds, for example, comprise a basket of investments monitored by a fund manager but they will never beat average market performance.

They only follow the overall performance of an index like the FTSE 100, which means the value of your investment will rise and fall with the market. This is fine when the market is performing well, but what happens to your money when things aren’t going so smoothly?

If you would prefer to put your money away for three years or more and entrust an experienced team of experts to manage your investments, then you may want to consider investing with Investec’s Click & Invest. 

This is an actively managed service for UK residents with £10,000 or more. It aims to outperform the market and is backed by 180 years of investment experience. 

All investment carries risk and you may get back less than you invested.

Find a growth investment plan

More than ever, investors need to know their money is being handled in the right way to aim to beat the market. The Telegraph has teamed up with Investec to produce a series of articles focusing on investing today and you can read them all at

For more information from Investec and to watch a video on active versus passive investing, go to

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