Build your own portfolio
If you’re a hands-on investor you can build your own portfolio using our individual funds. You’ve got a wide range of fund types to choose from, including index funds, active funds and ETFs
Index funds
Track the market.
Active funds
Aim for a better return than the market.
ETFs
Funds you can trade on the stock exchange.
Buy a ready-made fund portfolio
Each ready-made fund portfolio gives you access to thousands of bonds and shares in a single investment. It helps spread your money around so all your eggs aren't in one basket.
LifeStrategy funds
Balance risk and reward with a LifeStrategy fund that mixes bonds and shares in a way that’s right for you.
Target Retirement funds
These funds automatically start switching into more stable investments as you get closer to retirement.
We do it for you
Picking your own funds is not for everyone. If you prefer, we can do it for you. You get matched with investments based on how you feel about risk, then we manage it all for you.
Stocks and Shares ISA
Invest up to £20,000 per year tax-free. Our low-cost ISA helps you keep more of your returns.
Personal Pension
Make your retirement savings go further with our low-cost Self-Invested Personal Pension (SIPP).
How to find a fund that’s right for you
It’s important to have a goal as it’ll help you choose a fund that suits your circumstances. You might be saving for a house or retirement, for example.
You can then decide what you need from your investments. It could be:
- grow your money
- receive an income
- growth and income
- earn interest on your savings if you’re planning to spend them soon or still deciding what to do with them
If you want to grow your money, you could consider a fund with an accumulation share-class. The dividends are automatically reinvested, so you’ll earn returns on the money you invest, as well as on the returns themselves. This is known as compounding.
If your goal is to receive an income, you might want to consider a fund with an income-share class. This is designed to give you regular payments.
If you’re planning to spend your savings soon, or you’re still deciding what to do with them, a money market fund could be worth considering.
It’s a low-risk investment that gives you a place to hold, rather than grow, your savings, while aiming to give you a slightly higher return than cash.
If you’re undecided about what to do with your savings, remember that a money market fund should only be a temporary option. Your investment will lose value in real terms, as inflation will be higher than your returns over time.
All funds have a level of risk. The higher the risk, the higher your potential gains – and losses.
The right risk level for you is partly to do with how you feel about loss. You might be naturally more cautious than adventurous, for example, and prefer not to take risks with your money.
But investing might not be as risky as you think. This is because:
- stock markets recover and keep climbing after slumps
- the longer you invest, the lower the chance of losing money
- cash can be risky too as it loses its purchasing power over time because of inflation
Before deciding the right level for you, you should also take into account when you’ll need your investment money. If you’re close to retirement, for example, you might want to take less risk as your money would have less time to recover from a dip in the market.
Read more about working out your attitude to risk
Read more about why investing is not as risky as you might think
Each type of fund is different. They can have different risk levels, potential returns and purposes. Here are some examples.
Index funds
Index funds track the performance of a specific market index, for example the FTSE 100. They’re known as passive funds.
Active funds
Fund managers actively choose these funds’ investments and decide what to buy or sell. They try to outperform an index, rather than track it.
ETFs
An exchange-traded fund can hold hundreds, sometimes thousands, of investments such as shares or bonds. They track market performance and you can buy and sell them on a stock exchange.
ESG funds
An ESG fund takes into account environmental, social and governance factors, as well as financial returns.
Having a range of investments across sectors and regions helps to reduce risk. This is because if one sector or region performs badly, there are still others in your portfolio that could do well.
But having lots of investments does not mean your portfolio is more diversified, as you might be investing in the same funds. You’ll pay more in fees and it could be difficult to keep track of lots of funds.
One fund, which combines a number of investment types, could be enough to help you reach your goal.
Check to see how a fund has performed over time. But remember, there’s no guarantee that a fund will continue to perform the same way in the future. And you may get back less than you invested.
Fees and charges will reduce your returns, so compare the Ongoing Charges Figure (OCF) with similar funds.
Ready-made fund portfolios give you access to thousands of bonds and shares in one investment.
We have 2 types of ready-made portfolios – LifeStrategy and Target Retirement.
Each of our LifeStrategy funds has a different mix of shares and bonds, so you can choose one that matches your investment goal.
Shares usually give you a higher return in the long run, but have more risk. Bonds are more stable, but offer lower potential returns. Having a mix of both helps balance risk and reward.
And with a Target Retirement fund you simply choose a fund based on when you plan to retire and we do the rest.
Otherwise, we can choose your investments and manage them for you.