You can invest in almost anything, the most popular options include:
Shares: A share is simply a part ownership of a company. When a company is listed on the stock exchange the shares have a market value and can be bought and sold.
Bonds: Bonds are loans made to a government or company and paid back with interest. They can offer regular income streams and a potential financial cushion during economic downturns.
Funds: A fund is an investment that pools together money from lots of individuals. The fund manager then invests the money in a wide range of assets e.g. UK shares, overseas shares, bonds etc. Each investor is issued units, which represent a portion of the holdings of a fund.
Whatever your budget your aim should be to maximise gains and minimise losses. Diversifying your portfolio is a great way to do this. Spreading your investments across different products and areas makes you less dependent on the performance of any one element and helps to smooth out returns over the longer term.