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Your Investment Options

We offer access to a wide range of investment options, including funds, exchange traded funds (ETFs) and individual shares. 

Read more about the investments we have available and how our research tools could help to find the right investment for your needs, along with details of associated fees and charges.

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.

How to invest

Unsure how to invest your money? Find out more about possible investment styles below.

Lump sum or regular investments?

Features of lump sum investing:

  • When you invest a lump sum all of your investment spends more time in the market. By having bought at only one price, this makes it more difficult to ‘smooth out’ big drops or increases in market prices, this may have a big affect on the value of your investment particularly in the short run.

Features of regular investments:

  • You may be able to reduce the impact of peaks and troughs on your investments as you can spread them over time and buy at different prices. When you invest using a regular investment plan with Lloyds Bank trades are discounted to £1.50 per online trade.

Investing for income or accumulation

Some investments may offer income in the form of dividends or interest, this can be treated in two ways depending on your investment goals:

  • Accumulation: Use any potential interest or dividends to reinvest in to your portfolio and increase your holding of investments. Increasing the value of your holding can help increase your potential returns, although there is also more capital to lose.
  • Income: If you would prefer a new source of income you can have potential dividends or interest distributed to you as a form of payment, the number of shares or units of a fund you hold will be the same as before.

Investments we offer

Do you need help deciding what types of investments are best for you? Discover our wide range of investments on offer.

Shares

Own a slice of a company

When you invest in a share you basically invest in to a small part of a company. Usually investors use a stock exchange to buy and sell shares. The prices of shares on the stock exchange change throughout the day based on the supply and demand of that particular share.

International shares

With Lloyds Bank you can invest in not only UK shares but a range of shares from other global markets such as: New York, Paris, Frankfurt, Milan, Amsterdam and Brussels.

Lloyds Bank does not have direct access to all overseas markets (for example the Japanese market). You may still be able to invest in an international share that we do not have direct access to by using a depository receipt. Depository receipts represent when you hold a share listed on a different overseas market. When you wish to use a depository receipt to invest in an overseas share, just head to our research centre and search for the name of the company using our global search tool.

If you are looking to trade in a U.S. market for the first time you will need to complete a W8-BEN form. More information can be found on our International Trading page.

Key feature:

  • Some shares offer a small proportion of potential profits (dividend payments).

You should consider:

  • Share prices rise and fall quite a lot and can be dependant on many things such as the state of the economy.

Funds

Own a stake in multiple assets

Funds are collective investments where fund managers pool together investors’ money to buy and hold assets in the fund on an investor’s behalf. Fund prices are set at the end of the day rather than moving up and down through the day.

One type of fund is an actively managed fund. The fund manager actively monitors the investments in the fund to ensure that the fund achieves its expected regular income or investment growth.

There are also passively managed funds whereby a fund buys and sells investments based on pre-set guidelines (for example tracking an index). This is done with the goal of mirroring the performance of the index, market or commodity in question.

Sustainable fund investing

  • Sustainability focussed funds
    Investments are included on the basis of  fulfilling certain sustainability criteria and/or delivering on specific and measurable sustainability outcomes.
  • Impact investment funds
    Investments made with the intention to generate positive social and environmental impact alongside a financial return.
  • Environmental Social Governmental (ESG)
    ESG is based on a the attitude a company holds towards environmental and social issues. ESG also considers a company’s business practices and code of behaviour.

As there isn’t an industry-wide standard for ethical or environmental funds, we recommend you review a fund’s underlying investments to ensure they meet your own ethical standards before making an investment.

Top fund picks - our Select List

Our Select List makes it simple for you to start your own portfolio with a shortened list of funds. Independently selected by Morningstar you can find our select list in our funds centre.

  • The Select list of funds are chosen on merit and not on commission.
  • The funds cover a range of sectors, risk profiles and fund types, for example; active and index trackers.
  • Morningstar observe how the Select List funds are doing and may suggest to change some of the funds – View changes to our select list.

Keep in mind, the inclusion of funds within this list should not be considered a personal recommendation but instead as a helpful aid to your own research.
 

View our select list

Key feature:

  • When investing in funds the risk is spread across many investments. This is because the fund manager is likely to invest in lots of different kinds of assets.

You should consider:

  • At some point a fund may change what it invests in, away from your preferences.

Exchange Traded Funds (ETFs)

Track a market, index or commodity

You can invest in a fund that tracks an index (like the FTSE 100 or S&P 500) or a commodity (such as gold or platinum) by investing in an Exchange Traded Fund (ETF) or Commodity (ETC). They aim to mimic an index, sector, commodity or currency. A fund manager will use the investors' money to buy relevant assets to achieve this.

Key feature:

  • ETF’s look only to track the performance of an index or commodity rather than out-perform it, so their charges tend to be lower. ETFs are an efficient way of investing as they are exempt from stamp duty.

You should consider:

  • ETFs track the market and so in theory,  may not return as much as shares or actively managed funds.

Investment Trusts 

Companies registered on a stock exchange that hold a collection of investments

An investment trust is another form of collective investment. If you want to invest in an investment trust you will need to buy shares rather than give money to a fund manager (like in funds). This is because investment trusts are companies listed on a stock exchange. Prices of a share in an investment trust are based on the value of the investments held but also the supply and demand of the shares themselves as it is listed on a stock exchange. This means they can be riskier investments than other collective investments such as funds and ETFs.

Key feature:

  • Like shares, investment trusts are traded in real time but hold lots of different assets. This offers the potential to spread risk like funds.

You should consider:

  • The price of the share you buy may be lower or higher than the actual monetary value of the assets held in your slice of the investment trust. This depends on changes in the demand and supply of shares in an investment trust.

Bonds and Gilts

Steadiness and fixed returns

Governments and companies may need to raise money (capital) and they do so by selling bonds and gilts to investors. These governments and companies will offer a fixed rate of return if investors lend them money by buying a bond or gilt. A bond or gilt confirms that any return will be paid to investors after a set time period.

Key feature:

  • Bonds and gilts may provide a regular and predictable income, at relatively low risk compared to other investment types. You can trade them, so your money is not tied up in a bond or gilt.

You should consider:

  • Because of the relative security bonds and gilts may offer, income is likely to be low and the value of your bonds will drop when interest rates go up. Emerging market bonds and corporate bonds offer a riskier option than domestic or US bonds.

If you wish to invest in bonds and gilts please call us on 0345 606 0560.

Apply for an account

New to investing with Lloyds Bank? Whether you want to trade regularly, build up your portfolio, or just want a simple ready-made investment, we can help.

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, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Important share dealing information