So, you’ve bought the gym membership, dusted off the guitar and finally decluttered the spare bedroom - New Year’s resolutions are in full swing. The New Year is also a great time to take a look back at your finances, and start planning ahead for 2025. 

2024 was an exciting time for investing. Bold innovation in the AI and Tech industries fuelled the Nasdaq and S&P 500 in the US. The big players in the US tech space, known as the ‘Magnificent Seven’ (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla), paved the way for strong gains in investor accounts.  

Here at Chip, we’re firm believers in using investing as a tool to grow your wealth. So, to that end, we’re taking stock of our top four reasons why we should all be investing in 2025. 

When investing, your capital is at risk. The value of your investments can go down as well as up, and you may get back less than your original investment. This article is not personal advice.
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Get ahead of inflation

Investing can be a great way to grow your money during periods of high inflation This is because investments generally have a better chance of beating inflation, which erodes the value of cash over time.

Prices continue to be high in 2025, with the interest rates of savings accounts coming down due to the falling Bank of England base rate. While history has shown investment returns typically outperform rates from cash, remember this is not guaranteed.
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Past performance is used as a guide only and is no guarantee of future returns. When investing your capital is at risk

Extra income from dividends

Investments could pay out dividends and act as a supplement to your income or be reinvested to harness the power of compounding and grow your investments further.

Remember that dividend income is liable to be taxed if your dividends exceed £500, but you can avoid this admin by investing with a Stocks & Shares ISA. Keep an eye out for our new dividend-paying funds in 2025!

Tax treatment depends on individual circumstances and is subject to change. Chip does not offer tax or financial advice.
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Plan for the future

Picture where you want to be in 10 years—or even further down the road when you retire. By investing regularly and consistently, you can start building the foundation for financial freedom and achieving your long-term goals.

Even if you're not looking that far ahead, holding an investment portfolio for over five years can help nurture growth and smooth out market ups and downs. Setting specific targets for your investments will keep you motivated as you work towards a goal. You can create personalised goals and track them easily in the Chip app!

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Tax-free gains

If you’re thinking about how to allocate your ISA allowance and have some left over for this tax year, make sure you use it before you lose it to reap the benefits of tax-free investing.

You can invest up to £20,000 a year through a Stocks & Shares ISA and you don't have to worry about any future admin, as all potential returns are tax-free.

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What are we excited about in 2025?

2024 was, on the whole, a good year for investors, and Paul O'Neill (FT) is optimistic that things are likely to hold firm for now. Interest rates are expected to fall further, and the economy is expected to experience reasonable growth. This may be good news for UK equities, and a good time to explore investment options at home, with our Vanguard FTSE 100 Index Fund. 

The exciting developments and successes of AI in 2024 are expected to continue, and the strong growth of US tech stocks are showing no signs of slowing just yet. Take a look at our AI ETF in the Chip app (available to Chip X members). 

Rapid innovation in Health Tech is expected to continue in 2025 alongside developments in AI, so our Healthcare Innovations Fund may be a good option for the more speculative investor.
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This is not a personal recommendation to invest in any fund.

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Your investments, your future

At Chip, we’re all about empowering our members to make their money work for them, and we’re big believers that investing can be key to this. 

If you would like to explore our funds, head over to our Investment Funds page, or the ‘Investments’ tab in your Chip app to build or expand your portfolio.
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FTSE 100 Index Fund - Unlock long-term growth potential through investment in the UK’s top 100 companies. 

S&P 500 Tech Fund - Access to the biggest names in the US Tech space. Think Apple, Microsoft, Adobe.

Healthcare Innovations Fund - One to watch in the New Year: explore companies pioneering the healthcare of the future.

‍AI ETF - The biggest innovators in Artificial Intelligence (AI) technology at your fingertips (Chip X membership required).

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Here’s to a year of growth for you all, 

Oliver

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When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment. Chip does not provide financial or tax advice and this is not a personal recommendation to invest in any fund.