If you’re approaching the situation with no, or minimal, existing stock holdings, then, a fund-style product, such as an ETF, can be a good way to start investing in stocks. Instead of buying one single stock, you buy a basket of many that follow a theme. For example, the Energy Select Centre SPDR ETF contains 23 stocks from the global energy sector, whereas the SPDR S&P 500 ETF tracks the value of the 500 US stocks that make up the S&P 500 Index.

Historical performance is not an indicator of future returns. However, stock markets have consistently generated returns over a long period of time for many investors. As a result, many people suggest delegating approximately 70% of your portfolio to stocks, and the remaining 30% to other asset classes. This number will vary according to personal circumstances, as well as your risk-profile.

There are different strategies available for analysing stocks and getting a better idea of potential future price moves. Fundamental and technical analysis are both popular approaches, but investors can also use personal experiences of a company to know whether they want to invest. First-hand analysis of a business can be just as valuable as attempting to read the charts.