If you've acquired a lump sum, through earnings, inheritance, or redundancy, there are lots of options available to you. You can spend the money, or save it for a future expenditure. You can also decide to grow this lump sum, by placing it in an investment bond. Depending on the type of fund you invest in and the level of risk you're prepared to take, you can see your capital grow over a period of time
Saving versus investing
Regular saving is a great way to build up money over time to meet your financial goals. If you have already built up a lump sum, then investing could be a good option for you. You may stand to earn a greater return by investing in a fund rather than a cash deposit account.
What are your goals?
Making the decision to invest will be influenced by the kind of financial objectives you have. Do you want to save over a short time period, or over a long term? For short term goals, like putting aside money for a holiday, a bank deposit account may be your best option. For long term goals, like education costs, then investing could be a good option. Investing in a fund can give you the opportunity to earn an inflation beating return over the medium to long term.
What's your attitude to risk?
When it comes to investing a lump sum, it's important to be aware that that there is a level of risk involved. Usually, the greater the potential return you want from your savings and investments, the greater the risk you have to take. With Zurich Life Investments, you can choose from a variety of different options, depending on the level of risk you are comfortable with.
Find out more about funds
The funds that you decide to select for investment will have a big impact on the kind of return you can expect. There are many different funds to choose from, and a variety of asset classes to consider. You can go for the Investment Bond, which allows you to choose from a variety of funds.