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Why invest?

Find out how investing could help your money grow in value and beat inflation.

Let's start with the basics - what is investing?

Very simply, it's buying a piece of something that could go up in value. So when you choose to sell it, you could get back more than you paid for it, although that's not guaranteed. All investments can go down as well as up in value, and you could get back less than you paid in.

You can invest in lots of things, including shares in companies, loans to companies and governments (bonds), as well as more physical, tangible things such as gold and property.

Many people invest through funds rather than direct into these assets. With a fund, your money is pooled with that of other investors, and a professional manager invests it for you. They'll make all the ongoing decisions on what the fund invests in and how it's managed.

Investing could help your money grow

When you put your money in a savings account or Cash ISA it's generally secure, and you'll earn a small amount of interest. But by investing your money, you're giving it the potential to grow more in value.

Not only that, the longer you can leave your money invested, the more potential you'll have for it to benefit not only from growth on the money you've invested, but also growth on any investment growth. This is known as compound growth, and can add up to a large part of the final value of your investments.


You invest £1,000 in a Stocks and Shares ISA. In year 1, your investments grow by 5%, meaning you now have £1,050. In year 2, your investments grow by 7%, so you now have £1,123,50. And so on year on year. Remember of course that investment growth isn't guaranteed, and investments can go down as well as up in value.

Investing can help beat inflation

Inflation erodes the buying power of your money. As living costs rise, your money doesn't go as far.


If prices rose 5% a year for the next 10 years, £100 in your pocket today would be only worth £55 in 10 years' time.

Unfortunately long gone are the days when you could expect to earn a reasonable rate of interest by putting your money in a savings account or even a Cash ISA. And even though interest rates are moving upwards again, they're unlikely to reach a level where they'll outstrip inflation, which is currently rising quickly.

Over the longer term, investing your money can give it more potential to keep pace with or even beat inflation, than simply saving it. However, remember that when investing your money, the value of your investments can go down as well as up, and you could get back less than you paid in.

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How to know if investing is right for you

Investing is generally best suited for longer-term savings goals of at least five years. That's because investing for longer periods can help to offset short-term fluctuations in investment performance.

Investing with abrdn

We’ve been helping people look after their financial futures for nearly 200 years. Under the Standard Life brand, which we sold in 2021, and now the abrdn brand, we’ve managed ISAs for thousands of customers. And our investment business has been managing investments for individuals, companies and institutions across the world for nearly 40 years.

We want to help people plan, save and invest for their futures, as well as help shape the future of the world we live in. So we’re committed to developing products and services that not only can help you meet your financial goals, but also can help your money make an impact.

More about abrdn
Defaqto rating
Defaqto award
We're delighted that all the improvements we've made over the past year to the service, digital content and support we offer our customers has been recognised with a 5 Star Rating by independent ratings agency Defaqto. Rated in 2022.
Our easy investment option of MyFolio Index Funds has a 5 Diamond Rating from Defaqto, illustrating its quality and performance. For more information about these funds, including past performance, download the factsheet here. Past performance is not a guide to future performance. Rated in 2022.
Expertly designed

We’ve been helping people look after their financial futures for nearly 200 years.

Quick and simple

Our ISA is quick and easy to open, and you can manage it online 24/7.

Pay less, save more

Our charges are clear, simple and competitive, so you get to keep more of your money.

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Ready to start investing?

Our Stocks and Share ISA is a quick, simple and competitively priced way to start investing. And with our easy investment option, all you need to do is decide how much risk you're comfortable taking. abrdns' experienced investment experts will then manage your investments for you.

Open an ISA