HL MULTI-INDEX FUNDS
Simple ideas to get you moving on your investment journey
THE ABC FUNDS
Three ideas for growing your workplace pension
Nick Clough
Product Specialist
The aim for most pension savers will be to save as much as possible by the time retirement comes round. One way you can grow your pension is to try and pick the right investments. The better your investments perform, the bigger your pension pot at retirement. Everyone's investment goals are different. It will depend on things like how much risk you're happy with and how far off you are from retirement. This means the default fund (where your pension is invested automatically, the HL Growth Fund) might not be right for everyone. You could consider other investments in addition to, or instead of, the default fund. But with so much choice, it can be hard to know where to start. Whether you are thinking about your investment choices for the first time or looking for an easy way to diversify your pension, we’ve come up with a simple starting point to help.
We call them the HL Multi-Index Funds.
Explore the funds
HL Multi-Index Funds give you a whole investment portfolio in a single fund. There are three to choose from, each targeting a different level of risk.
In this guide we’ll compare these funds with the default investment fund for your workplace pension, the HL Growth Fund.
What is investment risk?
Depending on your circumstances, you might be prepared to take a risk. Investments that have a higher level of risk may have the potential to deliver a higher rate of return. You’re likely to see more ups and downs along the way, but there are no guarantees.
Or you might decide that you want a smoother ride and you’re happy with a lower, but steadier, return. In that case, you might choose an investment with a lower level of risk. If you’re comfortable taking higher risk to hopefully receive higher returns, or prefer a more cautious approach, the approach you take is a very personal decision – and could change over time with your circumstances.
Our investment approach
Our experts blend different investments, aiming to deliver the highest potential growth at each risk level. The investment funds are designed for people with at least a 5-year investment timeframe, so we invest primarily based on where we see the best opportunities for growth over the long term. Our experts have the flexibility to invest in shorter term investment opportunities to boost the fund’s return too.
The Multi-Index range offers great value for money via low cost “index funds”. Index funds aim to track the performance of a broad stock or bond market, without relying on the skill of a fund manager to select individual investments. This keeps costs down, therefore spreading your money more widely and reducing the risk of underperforming the market.
Our experts will take care of adjusting the mix of investment funds in the future to ensure the fund stays on track. That means you don’t need to worry about the day-to-day investment decisions, as long as you remain happy with the risk level you have chosen.
IMPORTANT INFORMATION Before you invest, remember that all investments can rise and fall in value, and you may get back less than you pay in. If you're not sure what's best for your situation, you should ask for financial advice. The Multi-Index fund range is managed by our sister company Hargreaves Lansdown Fund Managers Ltd. We’ve written this guide to give you useful information to help you make the most of your workplace pension, but it’s not personal advice or a recommendation to invest. If you aren’t sure if a particular investment is right for you, please ask for advice. The information in this guide was correct as at 3 January 2024, unless otherwise stated. You can’t normally access money in a pension until age 55 (57 from 2028). Pension and tax rules can change, and their benefits depend on your circumstances.