Investment options
Investments come in all shapes and sizes. Understanding how each one works can help you choose what's right for you.
What types of investments are there?
Most investments are built from 4 main asset types.
- Equities (shares) - owning a fraction of a company.
- Bonds - loans issued to governments or corporations.
- Cash - like savings accounts, or short-term, low-risk government debt.
- Property - physical land, residential or commercial buildings.
Many popular investment options, such as funds, ETFs and investment trusts, combine these assets into a single investment to track a theme.
Investments we offer
Shares
When you buy shares, you're buying a small stake in a company.
Key benefit
Growth potential - If a company performs well, its share value can increase over time.
Something to consider
Risk of loss - If a company struggles, its share price can fall and you could get back less than you invested.
Bonds and gilts
Bonds and gilts are loans you make to companies or governments. In return, you receive interest, usually at a fixed rate.
Key benefit
More stable returns - They're generally lower risk than shares and can offer a steadier income.
Something to consider
Lower growth potential - Returns are usually lower over the long term, and prices can be affected by interest rates and economic conditions.
ETFs
ETFs trade on the stock exchange like shares, providing access to a group of investments. Some track an index, sector or commodity, while others are actively managed.
Key benefit
Lower costs - ETFs are usually cheaper to run, which can mean lower fees.
Something to consider
Returns will vary - Index-tracking ETFs generally aim to match market performance through ups and downs. Active ETFs aim to outperform, though this isn't guaranteed.
We can't trade or hold US listed ETFs.
Funds
Funds pool your money with other investors to buy a mix of assets, such as shares, bonds and cash. This helps spread risk.
Key benefit
Diversification - Funds can help smooth out the ups and downs if individual investments perform poorly.
Something to consider
Access to your money - Some funds, such as property funds, may need time to sell assets, which can delay withdrawals.
Investment trusts
Investment trusts are companies that invest in a range of assets on behalf of shareholders. Each trust has its own aim and investment approach.
Key benefit
Potential for higher returns - Some trusts can borrow to invest, which can boost returns.
Something to consider
Price movements - Share prices can fall based on investor demand, not just how the investment performs.
How would you like to invest?
Whether you have a lump sum or want to invest regularly over time, both can help you work towards your financial goals.
What are you investing for?
Your investment goals can help determine how you choose to receive any income generated by your investments.
Get trading for less
Our pick your own accounts offer low-cost investing across our range of investment options.
See our range of investments
Helping you grow your money for the future.
Investing with Lloyds
Including Ready-Made Investments, Share Dealing and Self-Invested Personal Pensions.
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