Investment Risk

Speak to an adviser about investment risk today...

Investment risk is a concept which defines the security of the capital that you are investing.  Different types of investments will carry different levels of investment risk according to how secure your capital, both in absolute and real terms.  

See below for a number of options with varied investment risk:  

Lower risk investments will generally include cash deposits with an authorised bank or building society, National Savings products and gilts issued by the UK Government. Taking on a slightly higher level of risk will open up corporate bonds issued by UK companies through to company shares is large blue chip companies. At the higher risk end of the spectrum, you will find international company shares. This list is not exhaustive and you will find that categories of risk are not set in stone.

The level of investment risk adopted can be tailored to your own attitude by investing in a number of different asset classes, ie, cash, property, fixed interest securities and company shares and the proportion of each asset held and the type of the underlying investment will dictate the level of investment to be adopted.

For most private investors, the easiest way of achieving a suitable level of investment risk could be through a collective investment fund, which will be managed by an experienced, professional investment manager. He or she will decide the proportion of assets held and the underlying selection of stocks. Each fund will have a particular aim (ie, capital growth, regular income, combination of the two, absolute returns, etc) and adopt a specific level of investment risk in order to meet that aim.

When considering any type of collective investment fund, whether it be a pension fund, unit trust, investment bond or investment trust, it is important that you seek the services of an independent financial adviser who will be able to assess your circumstances and look at your objectives in conjunction with your attitude to investment risk, thereby managing your expectations and selecting an investment medium that you are happy with.

Speak to an adviser today about the investment risks you are willing to take:

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.