Log in Menu Home Advice, tools & guidance Principles for good investing Principles for good investing Investing is about making your money work harder for you. We believe it should be simple and rewarding. We’ve developed a set of four fundamental principles to help make good investing easier for everyone. Whether you’re just getting started or are well on your way, these key investment ideas can help lay the groundwork by setting clear goals, developing a plan for the long term and sticking to it. While your personal situations and preferences may lead you down different paths to your goals, these tenets are here to keep us all on the right track. 1. Build on firm foundations We believe investing is for the long term, so it makes sense to start with a firm financial foundation. Before you begin, there are a few things to consider. Clear your debt Cover your expenses Get guidance Maximise your pension savings 2. Start with a plan Knowing what you want from your investments, and how you’re planning to get there, will help set the course for the rest of your investment choices. Define your goals Get tax-savvy Decide how to manage your money Set up a regular savings plan Don’t delay 3. Manage risk Knowing what level of risk you’re most comfortable with will help you choose a blend of assets that is right for you. Your attitude to risk is likely to change over time so be consistent but also flexible in your approach. Diversify Keeping a cool head 4. Focus on the long term Stock markets can be unpredictable, and your investments will perform differently over time. So, it’s important to keep the long term in mind and see past any short-term peaks and troughs. Don't tinker The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Related articles Personal finance Four investing myths that every rookie should know A rise in saving levels has brought many newbies to investing Ed Monk Fidelity International 12 November 2021 Investing ideas Diversifying your portfolio in a changing world Why diversification matters now more than ever Maike Currie Fidelity International 22 October 2021 Capital preservation Why are investors moving their money into cash? Cash can be king when markets turn sour Toby Sims Fidelity International 14 October 2021 Read more articles Understanding market volatility It can be worrying when stock markets go down. Our guides will help explain what to do - and what not to do - during times of uncertainty. Managing investments in uncertain times This is a general guide about investing when the stock market is in an unpredictable period of sharp falls or rises. Download Investing in uncertain times Important policies Useful information Other Fidelity sites Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund. This website is issued by Financial Administration Service Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP. © FIL Limited 2021 Fidelity uses cookies to provide you with the best possible online experience. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on our site. However, you can customise the cookie settings and view our cookie policy at any time. ContinueCustomise