“However, many investment funds exist where the risk is spread across a range of different assets, making a considerable loss of investment unlikely. As a general rule, you should not invest more than you can afford to lose.”
So, when is a good time to invest in a stocks and shares ISA?
Mr Rogers said: “If a stocks and shares ISA is appropriate, now could be a good time to open an ISA.
“The global political and economic uncertainty are creating some volatility and the markets are lower than at the start of the year, creating a potential growth opportunity for long-term investors.”
What’s better for short-term savings?
Samuel Leach, director at Samuel & Co Trading told Express.co.uk: “Stocks and shares ISAs should be viewed as a long-term investment, but if you are looking to save money short term with the view to use it in a couple of years, your safer option is to opt for a cash ISA and fix it with a period of time you are comfortable with.
“Whilst, for now, you will be losing money in real terms as inflation is so high, it still beats holding the money as cash.
“It’s risk-free compared to investing in a stocks and shares ISA, especially when the major stock markets are currently in a downtrend due to worries about inflation and a potential recession.”
Tips for those looking to open a stocks and shares ISA
Think about costs
When you’re getting started with investing, look for funds with low ongoing charges figures (OCFs) and providers with low management…
