SIPP investment ideas
Your pension, your goals
One of the best things about a SIPP is having control over how and where you choose to invest. Your financial goals, moral values, attitude to risk and costs should all come into play when making these decisions.
Regularly reviewing your investments and their performance is essential. As your goals and priorities change over time, you may wish to change your investment choices and strategy too – particularly as you approach retirement.
Picking your own investments
In the HL SIPP you can choose from over 2,500 funds, shares, investment trusts and more to build your own portfolio. You’re in control of what you buy and sell. Understanding the importance of asset diversification and researching investments with objectives similar to your own goals, are two sensible first steps.
Latest fund ideas for a SIPP
These investment ideas aren’t personal advice. Investing in these funds isn’t right for everyone. Investors should only invest if the fund’s objectives are aligned with their own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks of a fund before they invest, and make sure any new investment forms part of a diversified portfolio.
Investments rise and fall in value, so you could get back less than you invest. If you’re not sure an investment is right for you, seek advice.
Total return fund
With an expectation that markets will be volatile while there is continued economic uncertainty associated with the coronavirus, a total return fund could be a good choice. Total return funds are more conservative than funds that invest fully in company shares. They normally invest in a mix of investments including shares, bonds, commodities and currencies. They could help provide modest growth for your investment portfolio over the long term, and help shelter your money when stock markets fall, but are unlikely to keep up with stock markets when they rise quickly.
- Aims to grow investors' money steadily over the long run, while limiting losses when markets fall.
- Invests in a mix of investments including shares, bonds, commodities and currencies and includes some of the world's best-known companies with highly recognisable brands.
- The fund has the flexibility to invest in higher-risk smaller companies and while the fund contains a diverse range of investments, it is concentrated, which is a higher-risk approach.
Global income fund
Global income funds are a convenient way to invest in a diverse mix of different countries, and provide managers with a larger pool in which to fish for dividend-paying stocks. An income fund can be a great addition to a SIPP portfolio for different reasons. You can either take the pay-outs to supplement your income (if you’re old enough to access your pension) or, if you are targeting growth and aiming to build your portfolio for longer, reinvesting dividends can help grow your pot at a faster rate thanks to the beneficial effect of compounding.
Fidelity Global Dividend
- Aims to provide a moderate but growing income through long-term capital growth, while staying focused on sheltering investors’ capital.
- Could provide international diversification to a UK-focused income portfolio, or add some steadier long-term growth potential to a more adventurous portfolio.
- The fund has the flexibility to use derivatives and invest in emerging markets and smaller companies, which can all add risk if used. The fund takes its charges from capital, which can increase the yield, but reduces the potential for capital growth.
Responsible investing fund
Responsible investment funds give you the chance to make money in a way that’s in line with your principles. Some avoid investing in areas that do harm, like tobacco producers, weapons manufacturers or alcoholic drinks makers. Others invest in companies that have a positive effect on society – from those that treat their employees well, to those that create clean energy through wind farms or solar panels.
Legal & General Future World ESG Developed Index
- Aims to provide long-term growth whilst being environmental, social and governance focused.
- Invests in broad developed stock markets, such as the US, Japan and Europe
- Invested in around 1,300 global companies, focused towards sectors such as technology, pharmaceuticals and financials.
- The fund has the flexibility to use derivatives which adds risk if used.
Asia Pacific growth fund
Over the years, rapid industrialisation, growing populations, and a desire to succeed have helped transform countries’ economies in different regions and led to new emerging markets. While Asia is home to developed markets such as Hong Kong and Singapore, others, including China and India, are still emerging so a long investment horizon is essential to help ride out the ups and downs.
Domestic consumption is set to be a key driver of growth over the coming years, helped by a young and growing population, and rising wealth. Continued innovation from companies at the forefront of technology based there, could provide exciting growth opportunities for investors. However, younger economies mean the risks are greater and more volatility should be expected.
ASI Asia Pacific Equity
- The fund has a bias towards businesses that rely on growing consumer wealth, but aims to have at least some exposure to most major sectors.
- Invests in a wide range of Asian markets, including both established and less-developed economies.
- This fund could provide core exposure to the Asia Pacific region and help diversify a global growth portfolio with a long-term view.
Help choosing investments
No matter how you choose to invest, you’ll still need to review your investments and make sure they continue to match your objectives and financial goals.
Our Wealth Shortlist features funds chosen by our analysts for their long-term potential. You can filter the list to find the right ones for you.
Example portfolios you can change
Just want a little help getting started? Take a look at a few portfolio ideas as a starting point.
Choose from one of six ready-made options. You’ll still need to regularly review the investments, but our team of experts will take care of the day-to-day investment decisions.
If you’d like a professional to make your investment decisions for you, you can choose a financial adviser to help.