Build your portfolio

Define your goals - are you aiming for growth, income, or a mix of both? Your answer may vary depending on your stage in life and what you are trying to achieve. Picking your own investments means you can change the proportion of growth-focused and income-generating investments as your needs change.

Time horizon

The length of time you want to invest for will influence your risk tolerance. Longer investment horizons can potentially allow for greater tolerance for risk.

The longer you invest for the more time you have for your investments to ride out market fluctuations. Shorter horizons might require more conservative investment choices.

Risk tolerance

Understand your comfort level with market changes. Higher-risk investments can offer greater long-term returns but come with increased volatility.

There are various strategies to mitigate investment risk.

Diversification

Choosing a mix of different investments, industries and geographies can spread your risk. This can help protect against market declines - if one area falls another might rise. Here are a few factors to consider when diversifying your investments:

  • Investment/asset types: spread investments across different asset types (e.g., shares, bonds) to mitigate risk. Each investment type reacts to different market conditions.
  • Funds or ETFs: invest in funds or Exchange-Traded Funds, which spread money across many underlying investments in a single fund.
  • Geographies: consider different geographies for investments, such as the UK, US, Europe, or further afield.
  • Investment options: select individual companies in diverse locations or choose a fund or ETF tracker that includes elements from one or multiple countries within a single investment.
  • Themes or sectors: consider choosing a mix from various themes or sectors like retail, technology, energy, and property to broaden your portfolio.
  • Company sizes: consider a mix of larger, established companies and smaller, emerging ones.
  • Growth vs. income: based on your investment objectives, balance your growth and income-focused investments.

Diversification

Choosing a mix of different investments, industries and geographies can spread your risk. This can help protect against market declines - if one area falls another might rise. Here are a few factors to consider when diversifying your investments:

  • Investment/asset types: spread investments across different asset types (e.g., shares, bonds) to mitigate risk. Each investment type reacts to different market conditions.
  • Funds or ETFs: invest in funds or Exchange-Traded Funds, which spread money across many underlying investments in a single fund.
  • Geographies: consider different geographies for investments, such as the UK, US, Europe, or further afield.
  • Investment options: select individual companies in diverse locations or choose a fund or ETF tracker that includes elements from one or multiple countries within a single investment.
  • Themes or sectors: consider choosing a mix from various themes or sectors like retail, technology, energy, and property to broaden your portfolio.
  • Company sizes: consider a mix of larger, established companies and smaller, emerging ones.
  • Growth vs income: based on your investment objectives, balance your growth and income-focused investments.

Investment types

We offer five broad investment types for you to choose from:

UK and international shares (equities)

Funds

Exchange-Traded Funds (ETFs)

Investment Trusts

UK government gilts and corporate bonds

Investment shortlists to help selection

Select List of funds: chosen by experts at FE Fundinfo, the Select List offers a range of options for growth, income, or a mix of both. Choose funds to balance your objectives and risk tolerance.

Control your risk by targeting specific countries from developed or emerging markets.

ETF Quicklist: we've collaborated with iShares by BlackRock to offer a shortlist of ETFs covering various countries and themes.

Regular investing

You could set up a regular investment plan to help smooth out the peaks and troughs of the market. You can change the amount to suit your circumstances, increasing or reducing as needed. Regular investments are commission free.

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you’re not sure about investing, seek financial advice. There will normally be a charge for that advice.

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Do your research

Find your next investment and catch up with market news or investment ideas.

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International trading

Take advantage of multiple international markets, with no trading commission.

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Understanding risk

Understand what investment risk is and how to manage it for your investments.

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Your money is protected

Investments with Lloyds Bank Direct Investments are protected up to a total of £85,000 by the Financial Services Compensation Scheme. This limit is applied to the aggregated total of any stock or cash held across the following brands which we administer.

This is in addition to any other savings deposits you may hold across Lloyds Banking Group. 

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Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.