Consider what you want
You need to start by thinking about what you want form the investment. Think about how long you want to tie your money up, for example. Consider how long you want it to be invested and what you want it to be used for. You may find that you need a specific investment such as a pension plan if you want a retirement fund but if you want a shorter term investment then something else will be more suitable.
Decide on risk
It is really important that you think about how much risk you are willing to take with your investment. You will need to think about whether you are prepared to lose any of the money that you have invested, none at all or whether you are happy to lose all of it. The amount of risk that you are willing to take is usually related to the possible return. If you want a bigger return, then you will have to be prepared to risk losing the money invested. However, if you do not want to risk losing any, then the return will be lower. You will need to decide whether you would rather try for a bigger return and risk losing it or not.
Use a financial advisor
It can be wise to use a financial advisor to help you with your decision making. They should have expert knowledge in investments and they will be able to let you know which type of investment will be the best one for you. Tell them how much risk you are willing to take and that will help them to let you know which types of funds you should be investing in.
Look at past performance
It is important to look at how funds have performed in the past. Although this is not a definite indication of how well they will do in the future, it can help you to compare different funds. One that does consistently well is probably more likely to be one that you would choose compared to one that fluctuates a lot.
You may decide that you would rather go through a financial brand that you have heard of. There are a lot of brands out there and some are more well-known than others. These days many people do not have a great deal of trust in financial institutions so may rather go with a name that they recognise than one that they do not.