Investing a Lump Sum | Pension Drawdown Company

Investing a Lump Sum

We can advise you on investing a lump sum.

There are a wide range of options available for investing a lump sum. Choosing the right one for you will depend on the size of your lump sum, the length of time you wish to invest for, and the amount of investment risk you are comfortable with. Deciding on the right type of investment will also depend on whether you want to invest for income or for capital growth.

The main categories (asset classes) of investment are:

  • Shares (also called equities)
  • Bonds
  • Property
  • Commodities
  • Cash

You can invest in shares and bonds by opening an account with an investment platform.

One of the most beginner-friendly ways to invest in these asset types is through a collective investment such as an investment fund.

About collective investments

Collective investments involve pooling your money with other investors in exchange for a share of a ready-made investment portfolio, managed by a professional fund manager.

This type of investment can provide a useful way to diversify your portfolio across risk levels, assets, and asset classes, if you do not have enough capital or investment know-how to do so yourself.

Collective investments can be actively managed, meaning the manager tries to select investments and outperform a benchmark, or passive, meaning they aim to track a stock market or index.

Names for collective investment include funds (stock and share ISAs, unit trusts and OEICs), investment trusts and ETFs – contact us for more details.

When it comes to choosing what investment to go for, a one-size-fits-all approach just doesn’t work – there isn’t a single investment product that will work for everyone.

We all have a unique set of personal circumstances and individual savings goals, and it’s only when you take a closer look at these that you can begin to answer the question ‘what is the best investment for me?’

Whatever type of investment we recommend for you, you will have the peace of mind of knowing that we will fully assess your personal circumstances and financial plans. We will research your options carefully and assess all the risks, charges and tax implications involved before you proceed.

If you don’t want to expose your money to investment risk, you may want to explore different savings options.

Investing a lump sum can feel like a big decision. Let us help you to make the right choice for your money, so please get in touch with one of our financial advisers who can recommend suitable investments for you.

THE RISK ASSOCIATED WITH YOUR INVESTMENT WILL BE DEPENDENT ON YOUR CHOSEN INVESTMENT OPTION. REMEMBER THE VALUE OF YOUR INVESTMENT AND ANY INCOME FROM IT MAY FALL AS WELL AS RISE. yOU MAY GET BACK LESS THAN YOU INVEST.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE. THE BENEFIT OF THE TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES.