Direct Debit Investment Ideas
Why starting a Direct Debit could be your best investment decision yet
Important information: Investments and any income they produce can go down as well as up in value, so you could back less than you put in. This isn’t personal advice - please ask for financial advice if you’re not sure what’s right for you.
Our latest investment inspiration and how to get started
Most of us are familiar with the story of the tortoise and the hare.
It teaches us that it’s possible to be successful by doing things slowly and steadily, rather than acting quickly and carelessly.
This is particularly true when it comes to investing. The more time you have on your side, the more likely you are to be successful. But remember that investments and any income they produce will always rise and fall in value, and you could get back less than you invest.
Investing by Direct Debit each month gives you the opportunity to build your investments steadily over time. You can get started from £25 a month.
This isn’t personal advice. If you’re not sure what’s right for you, please contact us for advice.
Investing in funds, ETFs and investment trusts isn't right for everyone. You should make sure an investment's objective is aligned with your own. Any investments should be held as part of a long-term diversified portfolio.
Why invest by Direct Debit?
- It's automatic. You won’t forget to invest, or get to the end of the month and realise you’ve spent the money earmarked for your savings. You’ll still need to check in on your goals every now and then, but your Direct Debit will keep ticking along in the background.
- It's great value. We recently removed our dealing charge for buying shares via Direct Debit. This means there’s no charge to buy funds, shares, investment trusts or Exchange Traded Funds (ETFs) when you invest monthly. For shares, the charge would usually be £11.95 per trade online. You’ll still pay dealing commission on shares when you sell your investment. Other charges or taxes may apply when you buy or sell investments.
- It's good discipline. Investing each month takes the emotion out of your decisions, so you won’t be tempted to try and time the market. This is notoriously hard to get right.
How does it work?
Once set up, your Direct Debit will be collected from your bank account each month. This is usually on the 7th of the month, or the next working day. If you’ve told us where you’d like to invest, we’ll then place any trades automatically on your behalf. This is usually on the 10th of the month.
Investment ideas for a Direct Debit
If you’re looking for investment inspiration, these ideas could be worth a look.
We think they could make great picks for monthly investing: you can set up a Direct Debit from £25 per investment. Or if you’d prefer to invest as a one-off, that’s fine too.
You can find more information on these investments, including their risks and charges in the Key Investor Information which can be found in the pop outs below.
This isn’t personal advice or a recommendation to buy, sell or hold any investment. If investors aren’t sure of the suitability of an investment for their circumstances, they should seek advice.
Investments and any income from them rise and fall in value so investors could make a loss. Past performance isn’t a guide to the future. Information correct as at 09 June 2023.
See our latest fund ideas for investing by Direct Debit
Schroder Asian Alpha Plus
- Offers exposure to Asian markets for the pursuit of long-term growth
Find out more about Schroder Asian Alpha Plus
Rathbone Global Opportunities
- Focuses on innovative companies with high-growth potential
Find out more about Rathbone Global Opportunities
See our latest investment trust ideas for investing by Direct Debit
City of London Investment Trust
- Focuses on large UK companies
Find out more about City of London Investment Trust
Personal Assets Trust
- Aims for shelter as much as growth
Find out more about Personal Assets Trust
See our latest Exchange Traded Fund (ETF) ideas for investing by Direct Debit
Vanguard FTSE All-World ETF
- A low-cost option for tracking the global stock market (FTSE All-World Index)
Find out more about Vanguard FTSE All-World ETF
Vanguard S&P 500 UCITS ETF
- A low-cost option for tracking the American S&P 500 index
Find out more about Vanguard S&P 500 UCITS ETF
HL Ready-made Investments
HL Ready-made Investments
Leave it to the experts
The only investment you’ll need?
If you’re not sure about picking your own investments, you can leave it to the experts with our all-in-one portfolio funds.
With four to choose from, you can pick the option most suited to you. Then choose to invest each month, or with a one-off instruction.
Add a little, build a lot
The power of regular investing
- It's good discipline - it stops knee jerk decisions, and removes the temptation to try and time the market.
- You'll benefit from 'pound-cost averaging' - investing automatically helps smooth out the bumps in the market, spreading your money across different market conditions.
- Share buying is free - there’s no fee if you buy shares, ETFs or investment trusts through Direct Debit, compared to £11.95 online for lump sums.
How much should I invest?
About this calculator: This calculator is an example - it doesn’t show what your investments will actually be worth. And doesn't include any pension tax relief that you may receive. Remember investments can go down as well as up in value so you could get back less than you put in.
To make these calculations, we've included an annual charge of 1.25%, but this could be lower or higher, depending on the investments you hold. We haven’t factored in inflation. These results are based on a growth rate of 5%, unless you have adjusted the growth rate in 'Additional options'.
How to get started
You can invest in any of the picks listed here with a monthly Direct Debit, or as a straightforward one-off instruction.
Alternatively, you can choose your own investments, or add money as cash each month and invest when you’re ready.
Investments go down as well as up in value, so you could get back less than you put in. This isn’t personal advice - please ask for financial advice if you’re not sure what’s right for you.
Helpful and understanding when making inquiries.
MR ROWBURY, Warwickshire
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