Understanding investing

Whether you’re new to investing or more experienced, it’s always good practice to keep learning. This is the perfect place to start.

 

What is investing?

Investing isn't just putting money aside, like you do when saving. It means using your money to buy something that might increase in value over time. You can invest in all sorts of things and may even be investing without even realising it – like if you were to buy a house or open a pension.

While investing often offers the chance for higher returns, it also comes with greater risk as there’s no guarantee that what you invest in will result in profit. Even the value of houses can decrease.

Busting the investing myths

Investing can feel daunting at first, but it doesn’t have to be. By clearing up some common myths we’ll help you invest with confidence and make your money work harder.

Could I lose my money?

It’s a natural question, but risk doesn’t mean you’re set to lose. Over time, markets have recovered and grown, even after events like Covid.

Keeping everything in cash can feel safer, but rising prices can shrink the value of your savings.

Investing gives your money more chance to grow, especially if you plan to stay invested for five years or more. You can still access it, but a long-term view helps smooth the bumps.

Spreading your money across different investments, which is known as diversification, also helps balance things out if one area dips.

Head to our resilient investing page to learn how to invest with confidence.

Resilient investing

Don't you need to be rich to invest?

With a Share Dealing ISA, you can start from just £20 a month with our free regular investment plan. With a Share Dealing Account, there’s no minimum deposit at all.

We also offer free investing accounts for 18 to 25 year olds. Choose from an Invest Wise ISA or Invest Wise Account.

With our Ready-Made accounts you can invest from £50 a month, or a £500 lump sum. Then select from 3 levels of risk and experts will take care of the rest.

You don’t need lots of money to start investing, you can begin small and build up over time. It’s still sensible to keep some cash savings aside for unexpected costs, so you’re not relying on investments for emergencies. Investments are a long-term plan. Your money isn’t locked away though and you can stop or start whenever you like.

Regular investing

I don't know where to start

It’s totally normal to feel that way at the start. The good news is you don’t need expert knowledge or lots of time to begin.

If you want a simple way to get going, our Ready‑Made options do the hard work for you. You choose your risk level and our experts handle the rest.

Prefer more control? Our pick‑your‑own accounts let you choose where your money goes, with tools like the Fund Select List and ETF Quicklist to help narrow things down. And with our regular investment plan, you can simply set and forget.

Starting is easier than you think, and we have options for every level of experience.

Compare accounts

Investing basics - how to get started

Learn the core principles of investing, why risk matters, and how concepts like diversification, volatility and growth vs income affect your decisions. These guides will help you build confidence before you invest.

Investing for beginners

Start your journey with our simple 5-step guide.

Investment risk explained

Understand risk and how to manage it before you invest.

Income vs growth

Income or growth? Find out which approach suits your goals?

Investment accounts and assets

Understand the different ways to invest. From Stocks and Shares ISAs to index funds and investment trusts, this section explains what each product is, how it works, and why it might suit your goals.

What is a stocks and shares ISA?

Learn about tax‑efficient investing with a stocks and shares ISA.

What is a fund?

Understand what a fund is and how it pools investments together.

Index funds explained

As a beginner-friendly investment choice, find out how index funds work.

Investment trusts

Find out more about investing in Investment Trusts and how they work.

Market basics

Markets can feel complex, but they don’t have to be. Discover what the FTSE 100 represents, how inflation and interest rates influence investments, and why these factors matter for long‑term returns.

What is the FTSE 100?

Tracking the top 100 companies. See how the UK’s main index works.

Inflation and interest

See how economic factors like inflation and interest affect returns.

Why volatility is good

Investments can go up and down, discover how market swings can help.

 

Time in the market vs timing the market

Curious about the difference between the ‘Time in the Market’ and ‘Timing the Market’ investing strategies? Watch our video with iShares by BlackRock, to learn more.

Keep in mind that the video is produced by BlackRock and does not constitute investment, or any other advice and is subject to change. Any opinions expressed are their own.

Playback time 3 mins, 19 sec.

Build and manage your portfolio

Creating a strong portfolio is key to successful investing. Learn how to diversify, include international investments, and balance risk and reward to meet your financial objectives.

Build your portfolio

Ready to think about creating your investment portfolio? Take a look at our steps to create a balanced investment mix.

International investing

Investing isn’t just bound to the UK, explore opportunities beyond with international investing.

Investing strategies

Take your investing further with smart strategies. Explore tax‑efficient options, responsible investing principles, and resilient approaches that help you stay on track through market ups and downs.

Tax‑efficient investing

Make the most of your money with tax-efficient investment options.

Responsible investing

Consider impacts companies have on people and the planet with responsible investing.

Resilient investing

Stay strong through market ups and downs to learn the secrets of successful investing.

Investing for longer increases the likelihood of positive returns. Over a period of 5 years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in. Tax treatment depends on individual circumstances and may be subject to change in the future.

Key terms you should know

Before investing, it’s important to get comfortable with the language being used. So let's dive into some key terms and concepts that will help. Understanding the terminology can help you to make informed decisions when looking to grow your wealth.

  • An asset is anything you own that has value - like money, property, or even shares in a company. If it helps you build wealth or if you can sell it for cash, it’s an asset. 

  • Your portfolio is your personal collection of investments. Your financial footprint, showing how you’re building wealth over time.

  • Diversification aims to spread your risk by not putting all your money in one place. If one asset falls in value, others might be doing better, helping to add balance to your investments.

  • Liquidity is how quickly and easily you can turn something into cash. Cash is almost instant. Selling shares usually takes 2 days. Selling a house? That takes time. The more liquid something is, the faster you can use it.

  • Capital Gains are the profit you make when you sell something for more than you paid. Each tax year you have a Capital Gains Allowance. This is the amount of profit you can make before paying any Capital Gains Tax.

  • Simply put, compounding is earnings on earnings. So, any growth you see on your investments will also earn growth. This builds up over time. It's a snowball effect.

  • Pound cost averaging involves investing a fixed amount regularly, no matter the market conditions. By buying consistently, you buy more units at lower prices and less at higher prices. This method helps lessen the impact of market fluctuations. 

Get started in 3

1. Pick an account

Select Ready-Made Investments. Or if you’re comfortable, an account for you to pick your own investments might be your style.

Ways to invest

2. Choose investments

Choosing to invest in more than our ready-made funds? With our ETF Quicklist and Fund Select List we can help you decide.

Research the market

3. Start trading

Start big or small, do it your way. We’ll provide trading support the whole way. Benefit from £1.50 fund trading or free regular investing.

Regular investments

Protecting your money

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

Protecting your money

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

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Boost your skills

We have a range of easy-to-read content to grow your confidence in investing.

Boost your skills

Tax on investments

If you earn a profit on your investments, you might need to pay an amount of tax.

Tax on investments

Your investment options

Understand what investment options are available to you.

Investment options

Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Important share dealing information

Smart investing

Whether you’re starting out or a seasoned investor, we’ve got you.

Lloyds investing

Smart investing

Whether you’re starting out or a seasoned investor, we’ve got you.

Lloyds investing