Ready-made Investments

With low interest rates and high inflationInflation causes a rise in costs for goods and a drop in your purchasing power over a period of time, e.g. a pint of milk in 1990 was 25p whereas today a pint of milk will cost you 43p. you might be looking at investing for the potential to achieve larger returns from your savings. Invest in one of our three ready-made funds: you can choose the risk level that’s right for you.

The basics

  • Ready-made investments are an easier way to make your money work harder.
  • Choose between our Investment Account or for a tax efficient option, our Investment ISA.
  • Funds are managed by professionals and pool investors' money together and invest on their behalf. Since your investment can be spread over a range of different stock markets, sectors and investment types, the risk involved may be reduced. More information about investment funds
  • Simply apply online, choose the fund with the risk level that’s right for you, and let the experts take care of the rest.

Investing and Saving

  • Cash savings grow slowly but steadily and can be accessed easily.
  • Your savings may be impacted if the rate of return is lower than inflationInflation causes a rise in costs for goods and a drop in your purchasing power over a period of time, e.g. a pint of milk in 1990 was 25p whereas today a pint of milk will cost you 43p..
  • Investing can offer the potential for greater returns.
  • Investing allows for a more diverse portfolio which can limit the risk from dips in the price of one particular asset type.
  • Returns from investing are not guaranteed and your investments can fall as well as rise.

Why try it?

  • Easy - Complete your application online in a matter of minutes then simply leave the rest to our investment experts.
  • Flexible - Start investing from £100 per month or a lump sum of £2,000.
  • Ready-made - Our experts take care of the day-to-day management of the funds to make sure they stay in line with the funds goals and risk level.

The differences between Savings and Investments

The differences between Savings and Investments

 

There is no tie-in period, but our investments are designed for medium to long term and should be planned to be held for at least 5 years. You should not invest with money you may need before this.

 

Whilst cash savings offer much more predictable and secure growth, investments tend to perform better over the long term. Factors such as inflation and low interest rates could mean your money may not be providing as high a return in a savings account as it could be if it were invested. However, you should always make sure you have enough cash available for emergencies, day to day and planned expenses. Experts advise you should keep around 3 to 6 months’ worth of expenses in cash as a minimum.

Inflation makes things more expensive over time

Your savings may be worth less in the future if returns are lower than inflation.

 

Inflation makes things more expensive over time.

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you’re not sure about investing, seek financial advice. There will normally be a charge for that advice. Tax treatment depends on individual circumstances and may be subject to change in the future.

Your Money, Protected

Our Ready-made investments are protected up to a total of £85,000 by the Financial Services Compensation Scheme. This limit applies to the total of any investments held across Halifax Share Dealing Limited.

This is in addition to protection from any other current or savings accounts held with the group.

Investment funds explained

1. What are investment funds?

Professional fund managers combine investors’ money and invest in a wide variety of assets, so you could benefit from:

  • Spending less time and effort because investment experts do the work on your behalf.
  • The risk you accept being spread out without needing to buy a host of different assets yourself.

2. What is an asset?

Funds are invested in 'assets'. There are four types of asset in our ready-made investments:

  • SharesA share is simply a unit of ownership. If you own a share, you own a stake in a particular company. Shares are listed on a stock exchange and the price of all shares will fluctuate throughout the day. - Own a small part of a company (such as Lloyds Banking Group).
  • PropertyInvestments made into property investments funds. Returns will vary depending on increases and decreases in property value or rental income for example. - Invest in houses, business premises or in a fund containing these properties.
  • Bonds and GiltsBonds and gilts are created by companies or governments for investors as a way of raising money. When you invest in a bond or gilt you’re lending money to the company or government for a fixed period in return for a fixed rate of interest. - A loan made by investors to governments and companies paying out a fixed return.
  • CashCash investments are stable, secure and easy to access quickly. Growth is dependent on interest rates. - Investors’ money can also be stored as cash too as a way to lower risk.

3. What’s the risk?

Think about the amount of risk you are comfortable taking.

  • Low - Bonds and gilts will be the main type of asset held in the fund so risk and potential growth will be lower.
  • Medium - A more balanced investment between lower risk assets (e.g. bonds) and higher risk assets (e.g. shares) to offer steady potential growth and risk.
  • High - The majority of investment will be in shares. Funds with higher risk offer potentially higher returns. Be aware the value of your investment can fall as well as rise..

What is a fund?

A fund will have a mixture of investment types so you don’t have to pick your own.

A fund with mostly bonds and gilts will be lower risk with lower potential growth.

A fund with mostly shares will be higher risk with higher potential for growth.

Types of funds.

Our ready-made investments

Managed Growth Fund 2

Fund manager approach: CautiousOur Cautious fund is dominated by lower risk assets such as government bonds and high quality corporate bonds but additionally may include small exposures to high-yield bonds. Our Cautious fund may also have some exposure to shares (UK and International), property and other riskier assets which have the potential for higher returns than bonds.

Risk level: Lower

Investment splitThis is the fund’s strategic asset allocation. The current asset allocation can be found within the fund’s factsheet. The asset breakdowns shown are indicative only and subject to change.

Low risk donut graph


Purple block  Shares - 26.7%

Light blue block  Bond & Gilts - 60.8%

Grey block  Property - 5.5%

Orange block  Other - 7%

Charges:

Service fee: 0.24% (capped at £36)

Ongoing charge: 0.21%

Transaction costs: 0.05%

Key documents:

Managed Growth Fund 2 KIID (PDF, 108KB)
Factsheet (PDF, 138KB)

Managed Growth Fund 4

Fund manager approach: BalancedOur Balanced fund aims to hold a mixture of shares and bonds typically on a relatively equal basis. This fund may have exposure to property and absolute return strategies and other assets.

Risk level: Medium

Investment splitThis is the fund’s strategic asset allocation. The current asset allocation can be found within the fund’s factsheet. The asset breakdowns shown are indicative only and subject to change.

Medium risk donut graph


Purple block  Shares - 54.5%

Light blue block  Bond & Gilts - 29.5%

Grey block  Property - 8%

Orange block  Other - 8%

Charges:

Service fee: 0.24% (capped at £36)

Ongoing charge: 0.23%

Transaction costs: 0.10%

Key documents:

Managed Growth Fund 4 KIID (PDF, 107KB)
Factsheet (PDF, 138KB)

Managed Growth Fund 6

Fund manager approach: ProgressiveOur Progressive fund is dominated by exposure to UK and International shares but may also have some bonds, property, cash and absolute returns strategies to aim to lower volatility during market fluctuations.

Risk level: Higher

Investment splitThis is the fund’s strategic asset allocation. The current asset allocation can be found within the fund’s factsheet. The asset breakdowns shown are indicative only and subject to change.

Higher risk donut graph


Purple block  Shares - 82%

Light blue block  Bond & Gilts - 8%

Grey block  Property - 5%

Orange block  Other - 5%

Charges:

Service fee: 0.24% (capped at £36)

Ongoing charge: 0.22%

Transaction costs: 0.14%

Key documents:

Managed Growth Fund 6 KIID (PDF, 107KB)
Factsheet (PDF, 138KB)

If you want more information about the three funds, read Our Fund Range and InvestmentsPDF opens in a new tab. (PDF, 2MB). This document contains details of how the funds are managed, their objectives and risks, and a detailed breakdown of the charges.

Our funds' past performance

The data in the below table and performance chart refer to the past, and past performance is not a reliable indicator of future results. The performance data includes the ongoing charge and all transaction costs within the fund, but does not include the 0.24% service fee which is paid to us once per year.

Source of data: FE Fundinfo

Date

Managed Growth Fund 2

Cautious

Managed Growth Fund 4

Balanced

Managed Growth Fund 6

Progressive

Date

30th Sept 2021 – 30th Sept 2022

Managed Growth Fund 2Cautious

-  14.2%

Managed Growth Fund 4Balanced

-  9.6%

Managed Growth Fund 6Progressive

-  6.7%

Date

30th Sept 2020 – 30th Sept 2021

Managed Growth Fund 2Cautious

+  7.2%

Managed Growth Fund 4Balanced

+  13.5%

Managed Growth Fund 6Progressive

+  19.0%

Date

30th Sept 2019 – 30th Sept 2020

Managed Growth Fund 2Cautious

-  0.7%

Managed Growth Fund 4Balanced

-  3.5%

Managed Growth Fund 6Progressive

-  4.7%

Our funds were launched on 16th September 2019, so we can only provide performance data from this date. 

30th Sept 2018 – 30th Sept 2019

Our funds weren’t launched until 16th September 2019.

30th Sept 2017 – 30th Sept 2018

Our funds weren’t launched until 16th September 2019.

The data is correct as of 31/10/2022.

Past performance graph

The above graph shows the percentage change of the funds since launch. This is to help you understand how the funds have performed over the longer term.

Please remember that the data in the above table and below performance graph refer to the past, and past performance is not a reliable indicator of future results.

The Last Available Price for each fund is shown below the graph and this is usually the price from the previous trading day. If you decide to invest in one of our funds, your trade will be sent to the Fund Manager and you will get the price given on the next available valuation point for this fund, which could be higher or lower than the price shown above.

Understanding what you’ll pay per year

These charges are based on the value of your total investment.

The total cost is a combination of the service fee, ongoing charge and transaction costs:

  • The service fee is 0.24% (capped at £36 and applicable to the 2023 fee). It is calculated monthly (minimum of 20p per month) based on the total value of your investment and is then paid to us once a year. This fee covers our costs for managing your account.
  • The ongoing charge is charged by the fund manager for their services and is built into the total value of the fund.
  • Transaction costs are incurred when the fund manager buys and sells investments within the fund. These costs are built into the fund's value.

Fund type

Service fee

Ongoing charge

Transaction costs

Total

Fund type

Cautious - Managed Growth Fund 2

Service fee

0.24% (capped at £36)

Ongoing charge

0.21%

Transaction costs

0.05%

Total

0.50%

Fund type

Balanced - Managed Growth Fund 4

Service fee

0.24% (capped at £36)

Ongoing charge

0.23%

Transaction costs

0.10%

Total

0.57%

Fund type

Progressive - Managed Growth Fund 6

Service fee

0.24% (capped at £36)

Ongoing charge

0.22%

Transaction costs

0.14%

Total

0.60%
    • The service fee is based on the value of your funds, calculated once a month and charged once a year (capped at £36). 
    • Ongoing charge and Transaction costs are calculated on an ongoing basis and built into the value of the fund.

    Value of your investment

    Managed Growth Fund 2 (0.50%)
     

    Cautious

    Managed Growth Fund 4 (0.57%)
     

    Balanced

    Managed Growth Fund 6 (0.60%)
     

    Progressive

    Value of your investment

    £1,000

    Managed Growth Fund 2 (0.50%) Cautious

    £5.00

    Managed Growth Fund 4 (0.57%) Balanced

    £5.70

    Managed Growth Fund 6 (0.60%) Progressive

    £6.00

    Value of your investment

    £5,000

    Managed Growth Fund 2 (0.50%) Cautious

    £25.00

    Managed Growth Fund 4 (0.57%) Balanced

    £28.50

    Managed Growth Fund 6 (0.60%) Progressive

    £30.00

    Value of your investment

    £10,000

    Managed Growth Fund 2 (0.50%) Cautious

    £50.00

    Managed Growth Fund 4 (0.57%) Balanced

    £57.00

    Managed Growth Fund 6 (0.60%) Progressive

    £60.00

    Value of your investment

    £20,000

    Managed Growth Fund 2 (0.50%) Cautious

    £88.00

    Managed Growth Fund 4 (0.57%) Balanced

    £102.00

    Managed Growth Fund 6 (0.60%) Progressive

    £108.00

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