All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Companies like banks, financial services companies and other commerce and payment companies play a huge role in shaping the global economy. Find out more about some of the leading finance shares in the UK, and what you need to know about investing in finance stocks.
What types of finance stock are there?
Finance stocks can be divided into the following general categories:
- Banks. Most of the world’s leading banking institutions are listed on the stock exchange, including large US banks like JP Morgan Chase and Citibank, as well as UK banks like Barclays and HSBC.
- Financial services companies. This includes companies that offer products such as share trading, pensions, personal banking and other consumer and commercial financial services.
- Fintech companies. Fintech includes any company that incorporates technology and innovation into its financial products and services, such as digital banks like Monzo and Starling.
- Payments companies. This includes payment processing companies like Visa and Mastercard, as well as PayPal and Venmo.
Popular finance shares to invest in in the UK
London is one of the world’s financial capitals, and is home to some of the largest financial institutions in the world, as well as the London Stock Exchange. As a result, there are a large number of finance stocks that you can invest in in the UK, including:
Pershing Square Holdings (PSH)
Part of the FTSE 100, Pershing Square Holdings is an investment trust that is managed by Bill Ackman, and tracks the performance of the US-based Pershing Square Capital Management fund. Pershing has been involved in a number of high profile activist investments, including a $1 bn short against Herbalife.
Scottish Mortgage Investment Trust (SMT)
Scottish Mortgage is a publicly-traded investment trust that is managed by Baillie Gifford & Co and based in Edinburgh. The SMT share price grew by 111% in 2020, and reached a new all-time-high in early 2021.
Why invest in finance stocks?
Finance stocks can be somewhat cyclical, and may be more exposed to global financial trends and macroeconomic changes. Events like the 2008 global financial crisis naturally had a huge impact on the price of many finance stocks, but over the long term, the finance and banking sector has been seen as a reliable investment.
We asked Brits whether their investments were predominantly driven by financial reasons or passion for the company/industry. Here's the breakdown of those who are driven by financial reasons.
Response | % |
---|---|
75+ years | 3.90% |
65-74 years | 12.10% |
55-64 years | 21.10% |
45-54 years | 12.60% |
35-44 years | 18.00% |
25-34 years | 19.90% |
18-24 years | 12.40% |
Compare platforms for finance stocks
The following share-dealing platforms offer access to a wide range of global (and UK) businesses. See which offers the most attractive rates for your needs, then simply head to the provider’s website and search for the name of the company you want to invest in.
Browse all finance stock guides
Zoe was a senior writer at Finder specialising in investment and banking, and during this time, she joined the Women in FinTech Powerlist 2022. She is currently a senior money writer at Be Clever With Your Cash. Zoe has a BA in English literature and a Diploma for Financial Advisers. She has several years of experience in writing about all things personal finance. Zoe has a particular love for spreadsheets, having also worked as a management accountant. In her spare time, you’ll find Zoe skating at her local ice rink. See full bio
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