The thought of getting into investing can be a daunting one, which is why a simple approach is always welcomed by would-be investors. Step-by-step guidance, clear instructions, and a proper understanding of the potential pitfalls are all important to know upfront. Many consumers avoid the process entirely out of fear of the unknown, thereby missing out on the opportunity for proper wealth creation. Lloyds Bank Investments offer clients a simple approach to their investment range. This review compares the investment range to some of the best around the world.
Investments are a big deal with Deutsche Bank. Read the full review on their product range to discover why.
About Lloyds Bank
With a few centuries under its belt, Lloyds Bank has managed to generously expand its operations. This allows the bank to boast that it’s not only one of the biggest banks in the UK, but also the world. Impressive asset holdings and market share place this bank among some of the best.
4 Investment Tips For New Investors
It’s easy to get sucked into investment scams, especially when the rate of return seems to be lucrative. In order to get the most out of investments, it’s important to keep an eye on the current market conditions and other market pointers. Roping in the help of a respected, experienced, and accredited financial advisor is also important.
Research the Credentials of the Investment Firm or Advisor
Not only is this a simple step to follow, but also an essential one to ensure that the investment is done with a reputable firm or individual. Research whether there is any pending litigation against the firm or individual and request a copy of their credentials.
If It Sounds Too Good To Be True…
The old saying alludes to the fact that there is no such thing as a get-rich-quick scheme. This means that those lucrative returns come with something that may not be as attractive: high risk. The level of risk will determine the potential for loss and products with exceptionally higher returns on the investment front tend to have a higher risk.
Don’t Invest Emergency Funds
Many investors have lost their financial safety net due to risky investments and often their emergency savings as well. It’s important to keep the emergency savings in an account that carries a guarantee or insurance. In-house savings at banks tend to work the best. Only use surplus funds to invest.
Be Prepared To Ride Out the Storms
Investments are long term commitments and specialists often advise clients to be prepared to invest for at least five to eight years. This gives the investment enough time to ride out the storms of market fluctuations and changes. Furthermore, it also gives the investment enough time to recuperate from the initial costs and charges, including the broker’s fee.
Lloyds Bank Investments Product Offerings
A Healthy Introduction for New Investors
This section is particularly helpful as it takes new investors through all the need-to-know aspects of running an investment. Customers have access to a full guide that takes them through the various stages of investments, plus a whole load of information that will serve them well for the duration of their investment. Furthermore, the guide is downloadable in PDF format to ensure they always have the information at their fingertips. First-time investors also have access to a final investment checklist to ensure they are ready to take the next step.
There are three different funds available in this category. Each carries a different risk in order to satisfy a variety of different needs.
- Customers can invest from as little as £100 a month. Furthermore, there is the option to invest an initial lump sum of £2,000 as well. Customers can also choose to do both.
- The portfolios allow customers access to the fund performance through internet banking. Customers can also switch between the three different funds.
- Furthermore, customers aren’t charged additional fees when they wish to sell all or part of their investments.
- The investments allow customers to invest all or part of their ISA allowance and there is no taxation on the returns. Customers have access to an Investment Account should they wish not to use their ISA allowance.
- These investments are not guaranteed and customers who earn an income from it may find it fluctuating. There is also the chance investors may get back less than they initially invested.
- Customers are required to do the necessary research on these products as there is no advice offered.
- The bank provides information, risks, and terms and conditions to allow customers to make an informed decision.
- Also, these investments carry fees and charges that can eat into the capital if not well-managed.
- Finally, customers are required to have access to internet banking to apply for these products.
Lower Risk, Lower Return
This category covers the first of three managed funds in the Lloyds range. The Managed Growth Fund 2 is a lower risk fund. The lower risk also inadvertently means that the return has a lower potential. The fund is split between Shares (23%), Bonds and Gilts (65%), and Property (12%).
Medium Risk, Medium Return
This is the second of three categories in the managed fund range offered by the bank. The Managed Growth Fund 4 has a moderate approach to the markets, which also means a moderate potential for return. The split is Shares (51%), Bonds and Gilts (39%), and Property (10%).
Higher Risk, Higher Return
The third of the three categories offers customers a higher potential of return, however, at a higher risk. The Managed Growth Fund 6 has the highest managed fund risk of the range. The investment split is Shares (75%), Bonds and Gilts (17%), and Property (8%).
This is a specialized service for those who wish to have access to larger portfolios. In order to qualify for this offering, customers are required to have at least £100,000 of savings and investments which includes personal pensions. They may also qualify if they have an annual income of at least £100,000. With this service, customers enjoy access to a financial advisor who will assist with the following:
- Customers will be able to create a personalized investment strategy
- They will also be able to build a suitable retirement plan
- The service includes a risk portion that takes care of the family
- Finally, customers can devise a strategy to preserve their legacy for future generations
This division is taken care of by Scottish Widows, which is part of the same group as Lloyds. It takes care of the three stages of retirement planning, which is:
- Retiring in over 15 years
- Within 1 to 15 years
- Or within the next year
Scottish Widows also takes care of the pensions portion to assure customers have a steady process for the duration of the retirement phase, from planning through to execution. The service includes the investment of lump sums for income, as well as other investments during this period.
Customers who prefer a straightforward transactional account should have a look at the product range offered by Lloyds.
What We Like About Lloyds Bank Investments
This is a simple approach to a very difficult topic, as investors are often at a loss as to where to start. The careful spread of different products makes it easier for investors to navigate the site. Whether they’re happy to chance it by themselves or approach a financial advisor, there is a product to suit their needs.
Furthermore, there is a wealth of information on the website that makes investing simpler and faster. Lloyds has done away with the red tape and just makes the approach more bearable. This opens the playing field significantly and encourages new investors to take the leap.
Finally, customers are aware of what they’re getting themselves into from the start. There is enough information on the website to guide investors accordingly and also make them fully aware of the risks associated with the investments.
Lloyds Bank also offers a range of savings accounts.
What We Don’t Like About Lloyds Bank Investments
There is a glaring issue that may cause some investors to seek assistance from other institutions. This is the fact that there is only access to a financial advisor when customers qualify with the minimum criteria, which is quite high. For those who are in the mid-ranges and need some advice on other products, this makes things a bit difficult and gives the bank the appearance of being unnecessarily exclusive when it comes to investment advice.
Critical Reviews Rating Lloyds Bank Investments – 9 of 10
Lloyds has a very straightforward approach to investments. However, there are a few warning bells we need to consider. Those who are fresh to investing have access to amazing tools and guidelines which make the initial phases of investment simple and easy to understand. Furthermore, those who have quite a substantial portfolio already benefit from the services of a financial advisor who can assist to make the portfolio even more lucrative.
What concerns us is the category that fits in between the newbie and the salted investor. They no longer need the training wheels but are also not ready to explore bigger frontiers. This places them in an investor’s nowhere land. For this reason, we are unable to award a perfect score.
Investment options need to offer a decent variety. One of the best ranges is offered by Credit Agricole.