Lump Sum Investments

Benefits Summary

LUMP SUM INVESTMENT

What is Lump Sum Investing?

Lump sum investing is a powerful strategy where you invest a single
large amount, rather than smaller, regular contributions over time. Think
of it as planting a mature tree rather than a seedling—your growth
potential begins immediately.

With a minimum starting amount of just €5,000, your capital can be invested across a range of professionally managed funds, tailored to your risk appetite and financial goals.

Why Choose Lump Sum Investing?

Immediate Market Exposure

Start capturing growth from day one.

Potentially Higher Returns

Historically, lump-sum investors may outperform regular savers over the long term.

Simplicity

A one-time commitment. Less hassle. More freedom.

Professionally Managed Options

Equity Funds

Aiming for high growth

Government Bonds

For peace of mind

Real Estate Funds

With rental or capital appreciation potential

Managed Funds

Balanced to match your risk profile

Who Is Eligible?

To invest in a lump sum product, you generally need to meet the
following:

Application Requirements

Here’s what you typically need to get started:

A completed application form (we’ll help with that) Proof of identity (passport or driver’s licence) Proof of address (utility bill or bank statement) PPS Number Proof of source of funds (e.g., inheritance, sale of property, savings) Tax residency declaration (for Revenue compliance).

Capital Protection Options Available

Worried about risk? Ireland offers capital-protected investment options
such as:

Capital Guaranteed Funds (3–7 years) Structured Deposits (3–5 years) Government Bonds (1–10+ years) Fixed-Term Deposits (6 months–5 years) Capital Secure Bonds (3–10 years)

These are ideal for conservative investors who value security and predictability.

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What Kind of Returns Can You Expect?

Low-Risk Options (1%–4%)

Ideal for cautious investors. Includes bonds, deposits, and capitalprotected plans.

Medium-Risk Options (4%–7%)

Balanced mutual funds, real estate, and corporate bonds. Designed for steady growth with manageable fluctuations.

High-Risk Options (7%–15%+)

Equities, emerging markets, and high-growth funds. Best suited for those who accept more volatility in pursuit of higher rewards.

Note: The funds you choose—and when you invest—will significantly impact your long-term growth. Always seek professional advice.

LUMP SUM

How to Maximise Your Investment

Diversify: Spread your money across multiple asset types to reduce risk.

Review Regularly: Even one-time investments deserve check-ins.

Plan for Taxes: Understand Capital Gains Tax (CGT) and DIRT implications to maximise your net returns.

Stay Informed: Let your advisor guide you as market conditions shift.

How to Compare Providers

Returns – Past performance isn’t a guarantee, but it helps.

Fees – Look out for hidden charges that eat into returns.

Risk Profile – Ensure it suits your comfort zone.

Terms – Understand the lock-in period and withdrawal rules.

Protection – Ask what guarantees are in place.

Reputation – Choose providers with a strong Irish presence and client trust.

Customer Service – Look for clear communication and ongoing support.

Inflationary Risk of Not Investing Your Lump Sum

Why Choose MMAdvisors?

Inflation is the increase in the price of a typical basket of goods andservices. It reflects the general cost of living in a country.
Over time, a typical €100 will not buy the same amount of goods or services that it does today. If your lump sum savings are not invested and generating at least a modest average net 2% return, inflation is slowly eating away at their real value.
Think about the rising cost of everyday essentials — from housing and
utilities to food, transport, and healthcare. By the time you need your
money in the future, it may hold less purchasing power if it has simply
been left in a low-interest bank account.

By investing your lump sum, you put a strategy in place to protect and
potentially grow the purchasing power of your hard-earned savings.
The hidden danger? Not investing and letting inflation erode your
money over time — a risk many savers overlook until it’s too late.

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Savings Versus Investing – What’s the Difference?

Although saving money in any form is always recommended, investing a lump sum over the long term has been proven to be an even more financially prudent decision.

When you place your lump sum into an investment plan rather than leaving it in a low-interest savings account, you give it the chance to grow through compounding. Over time, not only do your original savings grow, but any returns generated are reinvested and begin to generate returns themselves.

This compounding creates a snowball effect, where the value of your lump sum can grow significantly larger over the years compared to simply keeping it in a deposit account. For example, investing a putting your money to workover 15–20 years with consistent positive annual returns can result in a much larger future value than leaving it untouched in a bank account that barely keeps pace with inflation.

By choosing to invest, you are not just holding money — you are putting your money to work and giving it the potential to grow into something far more powerful for your future.

COMPARISON OF REGULAR SAVERS INVESTMENT PLAN
OVER 15 YEARS VERSUS SAVING IT IN A BANK

Initial Contribution
Term (Years)
Annualised Average net % Returns
Total Gross Savings Plan Value After 15 Years
Value of Saving in Bank a/c if you don’t invest
Variance
€50,000
15
5%
€103,946
€50,000
€53,946
€50,000
15
6%
€119,828
€50,000
€69,828
€50,000
15
7%
€137,952
€50,000
€87,952
€50,000
15
8%
€158,608
€50,000
€108,608
€50,000
15
9%
€182,124
€50,000
€132,124
€50,000
15
10%
€208,862
€50,000
€158,862
€50,000
15
11%
€239,229
€50,000
€189,229
€50,000
15
12%
€273,678
€50,000
€223,678
€50,000
15
13%
€312,714
€50,000
€262,714

*Figures are for illustration purposes only and do not represent guaranteed returns.

THE S&P 500 PERFORMANCE SINCE 1950

Below is a chart of the actual returns of the S&P 500 since 1950. The S&P 500 is an index that tracks the top 500 companies in the

United States. Although there have been good and bad years, the average return from 1950 to 2025 is 10.83%

Sp
sector
Below is a chart of the actual
Regular Saver Investment Plan
fully Central Bank of Ireland regulated
note that actual return can

*Please note that actual return can go up and down, and past performance is not a true indicator of future investment performance*

Choosing a Provider

Before starting a Regular Saver Investment Plan, it’s essential to compare all available providers in Ireland so you can make the most informed decision and choose the one that best suits your needs.

As a fully Central Bank-regulated multi-agency financial brokerage, we
only recommend providers who are also fully Central Bank of Irelandregulated — giving you extra protection and peace of mind.

Regular saver investment plans in Ireland are typically provided through Life Assurance Companies. The most common and trusted providers include:

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To help you make the best choice

We compare all providers in the following key areas:-

Fees & Charges

Allocation rates, annual management charges, policy fees, and any hidden costs

Investment Fund Options

Range of choices and long-term track records (5–10 years)

Flexibility

Access to funds, withdrawal terms, and potential
penalties

Customer Service

Ease of accessing policy information, userfriendliness of online portals, and responsiveness to queries

Once you’ve chosen your provider, we’ll guide you through every step — from completing paperwork to activating your plan — so you can start saving and investing with confidence.  Below is a table of actual average annual returns over the past 10 years generated from some popular investment funds offered by these main providers for all savings plans.

ACTUAL AVERAGE 10-YEAR PERFORMANCE FROM A RANGE OF POPULAR MULTI-ASSET FUNDS WITHIN THE RISK CATEGORY(MEDIUM)

ACTUAL AVERAGE 1
POPULAR MULTI ASSET FUNDS 1

ACTUAL AVERAGE 10-YEAR PERFORMANCE FROM A RANGE OF EQUITY FUNDS WITHIN THE SAME RISK CATEGORY (HIGH)

High 1
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ACTUAL AVERAGE 10-YEAR PERFORMANCE FROM A RANGE OF POPULAR MULTI-ASSET FUNDS WITHIN THE RISK CATEGORY(HIGH)

Without Monthly Contributions
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FREQUENTLY ASKED QUESTIONS (FAQ's)​

Q1. Is lump sum investing a good idea?

Ans: Yes, lump sum investing can be a smart strategy—especially for longterm investors. By investing your full amount at once into a diversified portfolio, your capital has the opportunity to benefit from market growth immediately. Historically, this approach often outperforms dripfeeding money over time. It's particularly effective if you're looking for the best investment for a retirement lump sum or planning to invest a pension lump sum.

Q2. Is lump sum investing risky?

Ans: Like any investment, a lump sum investment carries some level of risk. Because you're investing a larger amount at once, your portfolio may face short-term market fluctuations. However, for those with a long term outlook and a comfortable risk tolerance, it can lead to higher returns. If you’re not ready for market ups and downs, consider alternatives like regular monthly investments or lump sum investments in mutual fund options with lower volatility. significantly increases borrowing power.

Q3. Is a lump sum better than monthly investing?

Ans: Wondering whether it’s better to invest a lump sum or in monthly instalments? Over short periods, the difference might be minimal. But over time, investing early often results in greater compounding benefits. That’s why many experts recommend lump sum investment plans if your goal is to maximise long-term returns, especially with retirement lump sum investment options.

Q4. What is the risk of investing a lump sum?

Ans: The key risk with lump sum investing is exposure to market volatility right from the start. If markets drop soon after you invest, your portfolio could temporarily lose value. But over the long term, markets tend to recover, and early entry gives your capital more time to grow. That’s why diversifying and selecting the right funds—such as those in capital protected lump sum pension plans—can help reduce risk.

Q5. What is the best account to put a lump sum of money in?

Ans: While keeping your money in a regular bank account feels safe, it usually earns very little interest. If you want your money to grow, consider lumpsum investment options like:

  • Instant access savings accounts – earn some interest and still access your money
  • Best lump sum savings accounts – higher interest with some restrictions.
  • Mutual funds – professionally managed with monthly income options
  • Retirement lump sum investment plans – ideal for tax-efficient, long-term growth
  • Capital-protected bonds or structured deposits – for cautious investors seeking security.

Q6. Is a lump sum better than monthly investing?

Ans: Wondering whether it’s better to invest a lump sum or in monthly instalments? Over short periods, the difference might be minimal. But over time, investing early often results in greater compounding benefits. That’s why many experts recommend lump sum investment plans if your goal is to maximise long-term returns, especially with retirement lump sum investment options.

Q7. What is the risk of investing a lump sum?

Ans: The key risk with lump sum investing is exposure to market volatility right from the start. If markets drop soon after you invest, your portfolio could temporarily lose value. But over the long term, markets tend to recover, and early entry gives your capital more time to grow. That’s why diversifying and selecting the right funds—such as those in capitalprotected lump sum pension plans—can help reduce risk.

Q8. What is the best account to put a lump sum of money in?

Ans:While keeping your money in a regular bank account feels safe, it usually earns very little interest. If you want your money to grow, consider lumpsum investment options like:

  • Instant access savings accounts – earn some interest and still access your money
  • Best lump sum savings accounts – higher interest with some restrictions.
  • Mutual funds – professionally managed with monthly income options
  • Retirement lump sum investment plans – ideal for tax-efficient, long-term growth
  • Capital-protected bonds or structured deposits – for cautious investors seeking security.

Choosing the best interest rates for lump sum investments depends on your time horizon, risk tolerance, and whether you’ll need regular income or long-term growth.

🔍 More Helpful Guides & Advice for Lump Sum Investments

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