Investments

Lump Sum Investments

In the current environment of low deposit rates, holding your money in cash isn’t always the best option in the long term as inflation can mean the real value or your purchasing power may decrease. If you would like to explore alternative options, or simply ensure that you are getting the best deposit rates available for your money, contact one of our experienced financial advisers. At MDL Financial Consultants we offer you access to a diverse range of funds, and we will construct an investment portfolio suitable for your individual needs.

There are many different types of investments to choose from, each with their own characteristics, advantages and disadvantages. As an investor, you will be faced with a vast amount of information about stocks, property, bonds etc when you are investigating how best to invest a lump sum. Understanding all the options available and finding the most suitable option for your needs can be a daunting task.

Our approach to investment is based on your risk profile and unique circumstances. We will advise on an asset allocation that meets your needs, taking into account your risk profile, your term of investment, economic factors and value for money. We tailor your investment portfolio to suit your individual circumstances, whether through off-the-shelf or bespoke products. We regularly review your portfolio and will recommend changes along the way, where appropriate.

At MDL Financial Consultants

  • We offer a comprehensive range of investment solutions that can cater for all kinds of investors, and all different levels of appetite for risk and reward
  • We offer access to the best national and international fund managers to manage money on behalf of our customers
  • We make risks involved in any investment clear and understandable
  • We regularly review your investments to ensure they continue to meet your needs and circumstances.

In designing an investment portfolio, we select funds from a wide range of asset classes that are generally available in the market. Because these assets all behave differently at different times, we aim to provide very balanced, diversified and robust investment packages.

The Main Assets Classes available to the Irish Investor can be summarised as follows:

Equity Funds – these funds invest in company shares and aim to deliver long term returns in two ways, namely through dividends and through capital growth. While equities have traditionally produced good long term growth, they can be volatile in the short term, where prices can rise and fall dramatically.

Commercial Property Funds – commercial property is a long term income generating asset, where growth can be achieved through increases in rental income and also capital appreciation. As with any asset class it is important that the fund you choose offers diversification in terms of the types of property, locations and tenants. Property as an asset class is less liquid than other assets as it can take time to sell a property, however a diversified property fund should have a reasonable amount of liquid funds to meet regular withdrawal requirements.

Fixed interest / Bond Funds – bonds are loans to government or corporate bodies, which generate a fixed income or coupon payable to the investor. The underlying bonds will generally pay a fixed of return until maturity, at which point the original capital is repaid, at the par (Original) value. While a bond is issued and redeemed at the same value, they are generally traded in the open market, and the price paid will depend market conditions, and the markets assessment of the issuers ability to meet their financial obligations.

Cash Funds – these are liquid funds held within a portfolio, and are generally held in short term deposits across a number of financial institutions.

Absolute Return Funds – these are funds which use investment strategies that have the potential to make positive returns in both rising and falling markets. Absolute return funds frequently use derivatives to reduce the potential downside in traditional assets. Unlike traditional funds, they can make money in a falling market by taking “short positions” whereby they sell shares or assets which they believe will fall in value. If the share price falls they will purchase the share at the lower price and make a profit on the transaction. Absolute return strategies can help achieve real investment diversification in a portfolio.

Commodities – these funds generally invest in a particular type of commodity such as gold, oil or agricultural produce. They provide a good hedge against inflation and are often considered a safe haven in times of uncertainty. Whilst commodity prices can fluctuate greatly they help bring balance to a diversified portfolio.

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