The value of investments can go down as well as up, your capital is at risk. Information on this page was collated and published in February 2022.
The Covid pandemic and Russian invasion of Ukraine have shown there are some things we can’t control. But when it comes to personal finance, there are things you can keep an eye on in the year ahead if you want to make the most of your money.
We expect the Bank of England will further raise interest rates as it looks to manage inflation. This means you’ll get a little more back on your savings but it could make borrowing more expensive… especially if you have a mortgage.
Inflation (rising costs) means the value of your pounds is being eaten away. Even though interest rates are rising, they are well below inflation.
Investing in a diversified portfolio can help spread the risk of investing by not having all your eggs in one basket. This means investing in different classes of assets, including markets and government bonds. And the longer you invest the more opportunity you provide for your money to grow (but please be aware there are risks too).
With interest rates currently historically low, investing could be a good way to make your money work harder for you and your family, and creates the potential to grow your money.
No matter what stage you are at in your life, level of knowledge you have, or amount you want to invest, we have simple options that could suit you. You can start online from just £50 with 5 ready-made funds, from cautious to high-risk.
You could help the planet and your finances because we invest in companies and industries who positively affect our world.
When we see events such as the current invasion of Ukraine, markets react fast and we see quick movements – ‘volatility’ - with the value of people’s investments falling in the short term. However, history has shown that markets recover – which is one of the reasons why investments are considered for the longer term (about five years or more).
It’s always worth remembering that past performance should not be taken as an indication of future performance. The value of investments, and the income you get from them, can fall as well as rise, and you may not get back what you put in.
You can read more on our views on the Ukraine situation here.
You need to be a Royal Bank customer with digital banking, aged 18 - 84 and a UK resident for tax purposes. Fees and charges apply. The value of investments can go down as well as up and you may not recover the amount of your original investment. You should continue to hold cash for your short term needs.
