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The six emotions stopping you from investing in a Stocks and Shares ISA

Are you wary of investing in a Stocks and Shares ISA? Do any of the following emotions ring true…?

Investing can be a bit like bungee jumping (minus the adrenaline): we may fear it without trying it. But if we took the plunge, we could find it incredibly rewarding.

So, what is it you’re worried about when it comes to investing? Are you unsure where to begin? Perhaps it's the fear of the risk involved?

Whatever emotions are getting in the way of you investing in a Stocks and Shares ISA, perhaps we can help to put your mind at ease...

1 You’re wary of getting involved in something you don’t understand

Fortunately, you don’t need an economics degree to understand the stock market. In fact, opening a Stocks and Shares ISA, as a potential way of reaching long-term financial goals, can be relatively straightforward.

Why not take a look at our ISA calculator to see how simple it can be? If you would like professional advice, you can always seek the help of a financial adviser. Though you will pay for their advice, an adviser will explain the basics, bust the jargon, and help find an investment that is best for your circumstances.

2 You’re unsure when to invest

The right time to invest in a Stocks and Shares ISA depends on your circumstances and goals.

Timing an investment according to stock market conditions sounds fine in theory but is virtually impossible in practice.

Investing in a Stocks and Shares ISA is for the long term because you have more chance of riding through the ups and downs of the market. Remember though that it doesn’t always work out for the best and you can get back less than you invested, no matter how long you are in the market for.

3 You’re scared of losing your money

You wouldn’t stick to just one dish at a buffet, would you? With a Stocks and Shares ISA you're able to invest in different funds across a range of asset classes, in order to spread the risk and reduce the chance of losing a lot of money in one go.

4 You’re concerned about the ups and downs of the stock market

Investment can be a rollercoaster of ups and downs, and you need to be prepared to ride it out. The most important thing is not to panic and pull out if the value of your funds dip: to do so could mean you lose out on making money if the market recovers.

If you’re willing to accept that with investment comes risk and you might not get back what you invested, and you’re confident that investing money won’t affect your short-term goals or put a strain on your finances, then a Stocks and Shares ISA could be for you.

You’re in it for the long haul, so buckle up, sit back and enjoy the journey. Take that attitude and you can even benefit from the ups and down by regularly investing, which means you buy more of your chosen funds when prices are low.

5 You’re doubtful you’ll have the time to manage your investment

Taking out a Stocks and Shares ISAs shouldn’t typically sap up too much of your time.

At Zurich, we offer access to actively managed funds, which means a professional fund manager will aim to get the best possible return for your investment. We recommend that you regularly review your investments to ensure you’re on track to achieving your future financial goals.

6 You’re worried that you’ll need to get your hands on the money

It’s important to bear in mind that Stocks and Shares ISAs are designed for long-term savings goals with a focus on growth. Though you can still access your money, you should be prepared to part with your cash for at least five years – could you afford to do that?

Set some time aside to think about what it is you’re saving for, and when you’re likely to need the money.

What now?

Find out more about a Zurich Stocks and Shares ISA.

Zurich is a trading name of Sterling ISA Managers Limited. Sterling ISA Managers Limited, authorised and regulated by the Financial Conduct Authority. Registered in England and Wales under company number 02395416. Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX.

This article was first published in March 2017 and last updated in November 2019.

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