One is when the shares increase in value (and you profit when you sell), the other is when they pay dividends.
Dividends are a bit like interest on a savings account. If a company makes a profit, it gives some of it back to you.
MORE IDEAS FROM Investing for beginners
The value of each unit will rise or fall depending on demand in the market for the fund.
Funds can invest in almost anything – countries, energy, gold, oil, even debt.
All funds have a theme – anything from geography (European, Japanese, emerging markets), industry (green companies, utility firms, industrial businesses), types of investment (shares, corporate bonds, gilts), to the size of the company.
An FTSE 100 tracker fund invests in the UK's 100 biggest companies and therefore is much more mainstream.
An investment is a gamble: instead of the security of guaranteed returns, you're taking a risk with your money.
You can invest in Shares, Bonds, Funds, Government bonds (gilts), UK property market or even Farmland, Vintage cars, Wine, Fledgling technology, firms or art.
For most, investing means putting money in the stock market.
Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.
Most of the time, this is best achieved through the acquisition of productive assets.
There are many digital investing services out there that will assists you in investing if you are a newbie. Before, there was a high barrier to entry for investing. But now, a website and digital assistant can guide you through the process.
Do a quick search on Robo investing to learn more.
❤️ Brainstash Inc.