Before you start
New to investing? Learn what it is, how it works and how to manage risk with our simple guides – so you can decide if investing is right for you.
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Investing terms, made simple
Quick, plain-English explanations to help you understand some of the terms you'll see when investing.
Asset
Something you own – like funds, shares, property or cash – that can go up or down in value and may earn you money over time.
Compounding
Or compound growth is when your investment earns money and you reinvest it, so it can earn even more over time. Investments can go up and down, and compounding only happens if you reinvest things like dividends.
Diversification
Spreading your money across a range of investments. This helps reduce the impact if one investment performs poorly.
Stocks and shares ISA
A type of account where you can invest your money in things like shares or funds, and any returns are free from UK tax.
Volatility
How much and how often an investment’s value goes up and down in value.
Remember, the value of investments can go up or down and you may get back less than you put in. We don’t give investment advice. We hope the information helps you learn and make informed choices.
Investments: Moneysupermarket.com Investments Limited is an appointed representative of P1 Investments Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA FRN 752005).
Reviewed on 17 Jul 2026
