Investing in an index fund is an easy way to diversify your savings with a single purchase, and it's usually pretty affordable, too. When you purchase one of these, you get an ownership stake in all the companies that make up the market index the fund is based on. That doesn't mean you can't lose money investing in an index fund, but over the long term, they typically deliver strong returns. Investing too conservativelyInvesting conservatively may help you feel more secure, especially when staring down a possible recession. Investing your emergency fund or short-term savingsYou should only invest money you don't expect to use for at least five years.

Source: The Guardian June 07, 2022 12:39 UTC