Investing in UK shares gives you a chance to keep your money close to home, support the local economy and diversify from US tech stocks. But it’s important to know what you’re getting into before making any decisions, particularly if you’re a beginner. Source :https://theinvestorscentre.com/

For starters, you’ll want to understand your goals and assess your risk tolerance. You’ll also need to decide how much capital you have available to invest. Whether you’re looking to build your portfolio with direct shares or an exchange-traded fund, it’s best to start small and add funds regularly over time.

UK Stock Market Tips: Smart Moves for 2025

If you’re a newcomer to direct share investing, you might want to focus on large-cap stable enterprises that pay reliable dividends. Or, if you have a longer-term view and don’t need the income that comes with a dividend, you could consider higher-risk smaller companies.

The FTSE 100 is the main share index for the London Stock Exchange (LSE). You might think of an index as being like an off-the-shelf shopping list that’s been put together to make it easier to buy and sell shares. It’s a useful benchmark for the health of global stock markets and is followed by active DIY investors, as well as passive funds. However, there are several factors that can affect your returns when investing in UK stocks. These include: