Stocks and shares ISAs are only a good investment if you manage risk sensibly because the stock market can be unpredictable, so it’s important to never invest more than you can afford to lose.

The greater the risk, the greater profit you’re likely to make but the more you’re also likely to lose. Always factor in additional costs when planning your investments, such as admin charges and fund management fees.

The golden rule of investing is to spread the risk by balancing your portfolio with a mix of equities, bonds and cash spread across different industrial sectors and geographical areas.