How do I make the most out of my lump sum? How can I make a profit on my existing capital? For those of you with a lump sum, you may well be asking yourself these very same questions, racking your brain trying to figure out a solution as to how to invest 100k. You could invest in shares. You could invest in stocks. You could invest in a start-up company you’ve fortuitously (or un-fortuitously, depending on your luck) stumbled across. The options are limitless, and the freedom of choice can sometimes be blinding. That’s the beauty of it, with all this choice, you can choose to put your money in any number of different type of investment. As the old saying goes, you shouldn’t put all your eggs in one basket (unless you want to).  After all, it is your hard-earned cash, why ‘shell it out’ on something from which the returns are speculative from the outset.

Diversification is adaptation

Whatever you decide to invest in,  diversification is a sensible, tried and tested strategy to bear in mind when pondering how to invest 100k. By spreading your capital, you reduce your chances of losing money as well as your exposure yourself to risk. Diversification aims to maximise your returns by investing in areas that would react differently to similar events. This way if something negative happens to one of your investments, the rest won’t likely experience the same negative repercussions.

Let’s outline a scenario in which an individual invests in the stock of both natural pharmaceuticals and synthetic pharmaceuticals. If one of the investments, let’s say the natural pharmaceuticals faltered due to environmental reasons, the investor would still have the synthetic pharmaceuticals to fall back on as they wouldn’t be affected in the same way. Spreading your risk in this way is sensible, and acts as a means of potentially increasing your returns.  Whilst by no means a sure-fire guarantee against losses, diversification is incredibly valuable when considering financial success in the long run.

If this by chance does seem to be something that interests you, diversifying your capital across a portfolio of loans can be very rewarding.

How much diversification is sensible?

Whilst completely subjective, diversification across different asset classes may mean that you’re handling more risk than necessary. For instance, if you’re knowledgeable about property investment but you’re not particularly clued up about stocks and shares, you could be dealing with more risk than you ought to be.  This is of course unless you’re sufficiently knowledgeable across all assets that you invest in. In that case, go for it!  Whilst traditional thinking would dictate that diversification should be used across a whole range of asset classes, you shouldn’t be afraid to challenge convention.

Many investors take and diversify their money across an asset class that they’re both knowledgeable about and comfortable with. In property, for example, you could invest across peer to peer loans and development loans- selecting different risk profiles from each, spreading your risk and maximising your potential for returns. Of course, you should take into consideration your own personal circumstances and your own attitude to risk before going down this road.

Auto-Invest- spread your risk

Here at The House Crowd, our brand new Auto-Invest product diversifies your capital for you. It allows you to invest completely ‘hands-free’.  The House Crowd allows you to invest your capital automatically (the clue was in the title folks!) across a varied portfolio of loans, spreading your risk. Your investment is spread across both development and peer to peer loans.

Our development loans help us to help Britain get building again. Help us alleviate the strain that the national housing crisis is placing on our country whilst building much-needed houses for young buyers and families alike. These investments are secured by a legal charge against the land or property. At current we have over 200 properties that have been built or that are currently in development.

Our peer to peer loans allows our investors to pool together their collective investment power and earn attractive returns. The loans we make are secured on the borrower’s land or property. Auto-Invest requires investors to invest their money for a period of 12 months and offers them an attractive interest return of 7%.



Please remember whilst we do everything within our due diligence to mitigate your risk, your capital is always at risk and your returns may vary. If you would like more information regarding risk or our underwriting procedures, please consult the guides provided.

In conclusion, to invest your capital across a diverse portfolio is as sensible an option as any, especially if you’re looking how to invest 100k. If you have any questions or would like to learn more about any of our products, please contact us at [email protected] or call us on 0161 667 4264.