Manuel Pardavila-Gonzalez
Managing Director, Customer Pensions & Investments, Lloyds Bank
Most people recognise the importance of saving money to build financial resilience and prepare for “a rainy day.”
Most people recognise the importance of saving money to build financial resilience and prepare for ‘a rainy day’. Others like to put something aside if they can, often in the short-term, perhaps to pay for a special celebration such as a family wedding or plan a memorable holiday to mark a milestone anniversary.
But looking to save money in the medium or even long term can often be a little more daunting because there is such a wide and diverse selection of investment opportunities out there in the market.
Finding the right support
Deciding what is a good, safe, reliable, or even more adventurous, investment opportunity may not always be clear and obvious to the average saver.
Investments expert Manuel Pardavila-Gonzalez, who is Managing Director Customer Pensions & Investments with Lloyds Bank said, “investing is an important way for people to make their money work harder for them, potentially with bigger returns in comparison to savings accounts , when they look at investing over the medium to long term.”
He also recognises that consumers may not always be confident in going down that route. “With so much information out there, investing can seem daunting. However, investments can be accessible and simple with the right support,” he added.
What are ETFs?
One option is to look at Exchange-Traded Funds (ETFs). “ETFs are a quick and easy way to get started on your investment journey as they can give you access to a wide range of investment types with just one fund,” explains Pardavila-Gonzalez. “ETFs are generally lower cost than funds and there is no stamp duty to pay, which helps people invest more of their hard-earned money.”
They also offer investors access to themes such as energy, technology or emerging markets to help individuals diversify their portfolio and reduce risk. He says: “Investing is an important way to make your money work harder in the long term, and ETFs are a great way for people to get started.” Of course, all investments come with risks and you will see them fall as well as rise, and nothing is guaranteed.
Investing is an important way to make your money
work harder in the long term, and ETFs are
a great way for people to get started.
Investment portfolio
ETFs may also appeal to younger people or those with families who want to save but may not have as much fluidity in their cash as older people. They can also appeal to those who are making a serious investment for the first time, or those looking to enhance their existing portfolio.
To offer investment opportunities to customers, Lloyds Bank has worked with iShares by BlackRock to create a shortlist of 16 ETFs, called the ETF Quicklist. This is a shortlist of ETFs that customers can choose from, and it includes different themes that are trending in the marketplace. It is about helping customers create the basic building blocks of an investment portfolio.” says Pardavila-Gonzalez, and designed to make investing easy, affordable and accessible for everyone.
No trading fees
Under the initiative, Lloyds Bank customers with a Regular Investment Plan can start from as little as £20 per month. In addition, there are no trading fees, which means it is a simple and affordable way to develop healthy investment habits, and it supports people as they work towards their financial goals.
“People can build a portfolio with our Regular Investment Plan and because they do not pay any trading fees, that means that more of their money is invested for the future,” adds Pardavila-Gonzalez.
Putting away a few pounds a month on a regular basis in an investment portfolio can help people of all ages and from all backgrounds build a significant financial nest egg to access when they need it and help them to achieve their financial goals.