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What to consider when making an investment
Investment products are generally better held for the medium to long-term - typically five to ten years. But that can be a long time to tie up your money, so we want to ensure that investment products are right for you. Investments can be risky, so it's important that you're aware of the risks involved. Markets can change, causing your money to rise and fall, so there's no guarantee that you'll get back what you put in.
As part of our commitment to helping you make an informed decision, here are some things to consider when making an investment.
- Is investing right for me?
- What commitment do I need to make?
- Are there any risks?
- What else should I think about before I commit?
Be clear about why you want to invest and how comfortable you are with risk, it will help determine the best way for you to invest. Is it for your long-term future, or is it to generate an income? Halifax provides investment products that aim to meet the needs of all types of investors. It may be worth seeing a financial adviser for professional advice.
What commitment do I need to make?
Firstly, think about how much money you can afford to tie up, and for how long as it may take time for your investment to grow. Some of our investment products require you to invest lump sums starting from £5,000 and others allow you to invest from as little as £20 a month. By investing little and often over the long term you can even out the highs and lows of investments, but remember you'll need to be able to maintain the payments in order to achieve your goal. Generally speaking you should look to invest for at least 5 years.
Please make sure you read all the terms and conditions, and that you fully understand any fees or charges associated with the investments.
Past performance is no guarantee of the future success of an investment. Movements in the market may cause the value of your investment to rise and fall, so there's no guarantee that you'll get back what you put in. So, carefully consider how much of a risk you can afford to take; low, medium or high, or if you can afford to take any risk at all.
What else should I think about before I commit?
Your money will be tied up for a long time, make sure you have money set aside for short-term savings needs and emergencies. You may wish to pay off any short term debts before you consider investing.
Standard savings accounts could be more appropriate if you can only afford to tie up your money for the short term. These accounts aren’t linked to stock markets, so your money will be more secure, grow steadily and be generally accessible.
If you're a cautious investor we have some products which have some guarantees on your investment. Investments may earn you more than standard savings accounts but the risks are greater and you could lose money. We have Personal Financial Advisers in all of our branches. They can advise you on all your savings options, including high risk investments and possible current tax savings, to help you make the right financial decision.
Next Steps
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Find out more about our range of investment products. |
If you would like to receive individual advice, you can book an appointment with a Halifax Financial Adviser and we’ll talk you through your choices step-by-step. We give advice on our own products.
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If you'd like to discuss other aspects of your finances, find out more about our in-branch Customer Review service. |
