What is an investment fund?
You may be familiar with buying individual shares, maybe through an employee scheme or buying shares in the likes of BT or Royal Mail when they were privatised.
When you buy shares you own a small part of that company. If it does well, your investment grows, if it doesn’t, your investment falls.
So, investing in individual shares can be risky as you’re relying on a single company’s performance to get a return. You may also find it time consuming, expensive and hard to get the right mix of shares or other assets to diversify your investment risk.
This is why investing in funds can be a good idea.
Funds pool money from lots of investors to buy shares and/or other asset types such as bonds. This lets you invest in a range of investments run by professional fund managers. Funds are invested across different asset types, spreading your risk and keeping the impact of transaction costs relatively low.
Investment funds available on the Santander Hub
It's a good idea to regularly review the funds you're invested in to make sure that they’re meeting your needs. If you want to make a change then it's easy to switch your money from one fund to another or to withdraw your money if investing is no longer right for you.
Need help deciding which investment fund to choose?
Get quick and easy advice from our online adviser tool or specialist advice from our qualified Financial Planning Managers.
As with all investments your capital is at risk and you may get back less than you invest. Investments should be held for the medium to long term (5+ years), unless there is a fixed term that applies.
Source: Santander UK plc as at July 2022