Close Menu
FintechFetch
    FintechFetch
    • Home
    • Fintech
    • Financial Technology
    • Credit Cards
    • Finance
    • Stock Market
    • More
      • Business Startups
      • Blockchain
      • Bitcoin News
      • Cryptocurrency
    FintechFetch
    Home»Stock Market»£2K in savings? Here’s how that could be used to start investing today
    Stock Market

    £2K in savings? Here’s how that could be used to start investing today

    FintechFetchBy FintechFetchFebruary 24, 2025No Comments3 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Image source: Getty Images

    Is it better to start investing with £2,000 or £200,000?

    I would say £2,000.

    For one thing, any beginner’s mistakes will hopefully be less costly.

    We all like to think beginner’s mistakes are something other people make, not ourselves. But the stock market can be a complicated place and there are very few investors who get it right all the time.

    Secondly, saving up £200k could take a long time for many people.

    If someone was to start investing with £2k, they could potentially begin much sooner. Time matters, because a long-term timeframe can help increase the opportunity for investments to grow in value.

    Getting ready to invest

    That is not guaranteed to happen, of course. Shares can soar but they can also crash. Dividends can be axed, but they can also be doled out on an unprecedented scale.

    So a vital first step for any new investor is learning at least the basics of how the market works. Concepts like valuing shares and keeping a portfolio diversified to reduce risks may seem basic, but they are important.

    Before someone can start investing, they need a practical way to do it.

    So another initial step would be choosing a share-dealing account or Stocks and Shares ISA to put the £2k into.

    How to choose from thousands of shares available

    What, then, about the step of deciding what shares to buy?

    Before people start investing, they may think they can trounce the market. In practice, even beating it, let alone trouncing it can be challenging. It is possible, though.

    So I think it makes sense for an investor to stick firmly to areas they understand. It helps to have a consistent standard of what to look for when assessing potential shares to buy.

    Deciding the right level of risk is important. As some new investors overrate their capabilities, they take bigger risks than really suits them, sometimes without realising it.

    I reckon a smart approach is to start with a high focus on risk management – it can be less costly than focusing too much on the potential rewards of a share and not properly assessing its risks.

    Putting the theory into practice

    Pulling those ideas together, I think insurer Aviva (LSE: AV) is one share someone new to investing could consider starting with.

    The company is in a market that is both large and likely to stay that way: insurance.

    In recent years, it has increasingly focused on its core UK market. That brings the advantage of playing to its strengths, but also concentrates risks so Aviva’s performance is now more closely tied than before to how the UK insurance market performs.

    It has a large customer base, strong brands, and deep industry experience. The forthcoming acquisition of rival Direct Line could see those strengths become even more compelling.

    However, one risk I see with the merger is that it distracts Aviva management from the core role of running the existing business.

    Aviva cut its dividend per share back in 2020. But it has been growing lately and the current yield is £6.90 annually for each £100 invested (6.9%).



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleXRP Price Nears Key Support—A Breakdown Could Be Devastating
    Next Article Ethereum Foundation Launches Open Intents Framework to Boost Cross-Chain Interoperability
    FintechFetch
    • Website

    Related Posts

    Stock Market

    Analysts think this 5%-yielding dividend stock could be undervalued by 92%!

    August 7, 2025
    Stock Market

    Check out the surprising 5-year return from the Taylor Wimpey share price and dividend

    August 7, 2025
    Stock Market

    How much passive income might I receive by investing £4 a day?

    August 7, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    Strategy Grabs Another $472M In Bitcoin—Even With Price At ATH

    July 15, 2025

    $65M Stolen, Actual Losses Likely Higher

    February 5, 2025

    Ethereum Price Analysis: Is ETH Gearing Up for a Surge to $4K?

    July 27, 2025

    Metrika and S&P Global Ratings Conclude Proof-of-Concept for Multi-Chain Digital Asset Risk Framework

    May 14, 2025

    TikTok Layoffs Hit E-Commerce Division in US, TikTok Shop

    May 21, 2025
    Categories
    • Bitcoin News
    • Blockchain
    • Business Startups
    • Credit Cards
    • Cryptocurrency
    • Finance
    • Financial Technology
    • Fintech
    • Stock Market
    Most Popular

    Deus X Pay Unveils NeXus: Instant, Zero-Cost Cross-Border Transfers

    March 7, 2025

    At £26.46 Shell’s share price is down 10% from its 12-month traded high, so should I buy more now?

    February 6, 2025

    Don’t Risk Your $2,000 Laptop—Travel With This $324 MacBook Pro Instead

    July 3, 2025
    Our Picks

    UK and Singapore Investment Bodies Join MAS’ Project Guardian to Advance Digital Assets

    August 7, 2025

    Stop Building a Business That Traps You and Start Climbing the 5 Levels to Financial Freedom

    August 7, 2025

    What is Talos AI Agent? Why is T Crypto Exploding? Best Crypto to Buy Now?

    August 7, 2025
    Categories
    • Bitcoin News
    • Blockchain
    • Business Startups
    • Credit Cards
    • Cryptocurrency
    • Finance
    • Financial Technology
    • Fintech
    • Stock Market
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • About us
    • Contact us
    Copyright © 2024 Fintechfetch.comAll Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.