We grade our investment funds on a scale of Very Cautious to Very Adventurous, with Very Cautious being the lowest and Very Adventurous the highest
level of risk. The risk category assigned to each fund will match one of the defined categories, or investment approaches, below:
Very Cautious
You are not willing to accept any risk to your investment in the short term and wish typically to invest wholly in cash assets. You understand that the
potential for growth is small and that over the long-term, inflation will reduce the buying power of cash assets.
As you typically wish to invest wholly in cash assets an investment product is likely to be unsuitable for you as investments in such products will
fluctuate in value. Product charges could exceed any growth and you could get back less than you invest.
Cautious
You are looking for an investment where the return over the long term is expected to be an improvement on that available from high street deposit
accounts.
You are willing to take some risk in order to seek some growth potential. You understand that this will increase the amount by which your investment
will fall and rise in value. However, under normal circumstances, you would feel uncomfortable if your investments fell and rose sharply in value.
You could get back less than you invest.
Typically, you would consider investing in Cash, Fixed Interest, Property and also in Equities.
Balanced
You are looking for a balance of risk and reward, with the aim that, in the long term, higher returns may result than those available from more cautious
investments. You are willing to accept that the value of your investment will fall and rise in value. You could get back less than you invest.
Typically, you would consider investing in a wide variety of assets, such as Equities, Cash, Fixed Interest and Property. Risk will usually be reduced
by spreading investment across a variety of sectors and markets and/or limiting exposure to overseas markets.
Adventurous
You are willing to accept a high level of risk on your investment, in order to seek higher growth potential in the longer term, than is available on
less speculative investments. You are prepared to accept that this will increase the risk of large fluctuations in the value of your investment and of
losing some or possibly all of your capital. You could get back less than you invest.
Typically, you would consider investing in a narrow range of asset classes, primarily in Equities. There may also be exposure to currency risk via
investment in overseas markets.
Very Adventurous
You are willing to accept a very high level of risk on your investment in order to seek very high growth potential in the long term. You are willing to
accept sharp day to day fluctuations in the value of your investments and you accept the risk of losing some or all of your capital.
Typically, you would consider investing in specialist equity markets or sectors, which are expected to be particularly volatile e.g. Emerging Markets.
There will be exposure to currency risk via significant investment in overseas markets. You could get back less than you invest.
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