OUR INVESTMENT GUIDE

Use the following topics to understand more about investments.

Investing for income and investing for growth
Exploring shares and bonds
Investing a lump sum or regular payments
Length of Investment
Choosing the right investment for you

You can either invest as an individual, buying shares, bonds and property or you can invest in a collective investment. This is where your money is collected with that of other investors in order to buy a large portfolio of assets, which is then professionally managed, an example of which is a stocks and shares ISA. Collective Investment Plans have the advantage of enabling you to spread risk, although the value of investments can go down as well as up and you may get back less than you invested.

The Government have also introduced stakeholder products to make it easier to invest. If you know you should be investing but you haven't had the confidence to start, then stakeholder plans may be right for you. They conform to Government guidelines, which means they are:

• Easy to understand
• Upfront about charges
• Clear about where your money is invested and the risks involved
• Realistic about what you can expect to get back

Our stakeholder range of options are:

• ISA Investor – Stakeholder Option
• Stakeholder Pension Plan
• Stakeholder Pension Plan for Under 18’s
• Child Trust Fund  

Investing for income and investing for growth
Some people, for example those thinking of retirement or who are no longer earning a regular salary, choose to invest their capital to get a regular income. Others invest in order to accumulate a lump sum that they can then use for expenses such as their children's education, family weddings, or retirement saving.

Exploring shares and bonds
When you buy shares in the stock market, known as equities, you are buying a stake in a publicly listed company. When a company offers its shares for sale to the public they effectively 'float' on the stock market. Generally, when the value of a company rises, your shares in the company are worth more and if it falls so does the price of your shares.

Governments or companies issue bonds in order to raise money. When you buy them you get a guaranteed agreed rate of interest over a fixed period, plus the price per bond. While they are generally regarded as lower risk investments than equities, the level of risk obviously depends on the market conditions and the stability and economic performance of the bond issuer. Bonds are often traded on the market, as investors look for the best available rates of interest for their money. The downside is that you may get back less than you invested.

Investing a lump sum or regular payments
Investing a lump sum means your whole amount is invested in the stock market straight away. A regular payment, enables you to build your investment gradually, keeping payments at a level you are happy with.

Length of Investment
You can invest for as long as you want, but there are a few points you need to bear in mind. Short-term investment in the hope of making big gains quickly is risky. You should be looking to invest for at least five years and the longer you leave your investment, the more likely you are to see a return, but the downside is that you may get back less than you invested. You should also consider your attitude to risk when choosing an investment.

Choosing the right investment for you
Your choice depends on a number of factors, including your attitude to risk, how much access you need to your money, the length of time you want to invest and what you want to achieve. We are here to help - the Investment section of the website should provide information to help you make the right investment decisions, but if you want advice you can arrange an appointment with one of our personal financial advisers. They give face to face no obligation advice on our own products. We have over 1100 advisers in branches across the UK who can help you identify your financial aims anddiscover investment options right for you.