Your key choices
There are hundreds of investment companies to choose from, but you can narrow the choices by being clear about why and how you’re investing.

What do you want from your investment?
Do you want a regular income or are you putting money away for the long term so it can grow – or do you need a combination of income and capital growth?

Some investment companies are specifically designed to give an income; others focus on capital growth; and some aim to provide both.

Will you invest a lump sum or make regular payments?
If you have a lump sum, you can invest directly (or via a wrapper product) in an investment company. If you want to make small regular payments, you probably need to consider investing in a wrapper product such as an ISA or a savings scheme.

One of the advantages of regular saving is known as "pound-cost averaging": you avoid the risk of buying all the shares in one go when the price is high.

How much risk do you want to take?
Roughly speaking, the level of risk you might be prepared to accept depends on how long you can tie up the money. If you've got time on your side, you can view your investments over the longer term. You may be able to take relatively more risk in exchange for the potential of higher returns. However, it is important to remember that this sort of investment is for the long term.

Do you want to invest in a particular sector?
Many investment companies only invest in a specific sector, which allows you to pick particular parts of the world or types of company.