In general, higher risk investments have a higher potential return, where as lower risk investments usually give a lower return.

The more risk you take, the more your investment could grow.

Conversely, the more it could fall.
There are no certainties with investments, so taking a higher risk does not guarantee a higher
return and you may not get back your original investment (known as the capital).
Savings in a bank
or building
society
Investing in
Bonds
Investing in
equities
Investing in
property
Up to £85,000 of your money is secure in a bank or building society through the Financial Services Compensation Scheme, unlike stocks and shares or fixed interest investments which are less secure.

The charts are for illustrative purposes only, and do not indicate any risk or reward you will experience.
The value of the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
 
A diversified portfolio that includes higher and lower risk investments, especially those whose performance is unconnected, can help to give your portfolio a more consistent level of performance over time.
Markets rise and fall all the time, so by investing at regular intervals, rather than in a lump sum, you won’t invest all of your money when the market is peaking. Of course, time is no guarantee of growth in values.
By investing through a fund that pools your money with other investors’, you can gain access to a wider range of investments. Professionally managed funds will aim to achieve a specific objective, with an approach to risk that may align with yours.
 
To find the level of risk that’s right for you, you need to think about your
circumstances and your financial goals.
How much time do you
have to allow your
investment to grow?
How much money would you
like to have at the end of your
investment period?
If you are investing for the short-term
taking too much risk could mean you
carry a greater risk
of losing value
If you are investing for the long-term
taking too little risk could leave you
without enough money if returns
are below the rate of inflation
Above all, you must make sure that you are comfortable with the level of risk you decide to take.
 
 
To make the right income investment decisions you need to consider whether you want a more modest income that carries lower risk, or if you are looking for a higher income and willing to take more risk to your capital and income. It is also important to consider the risk and potential return of your capital.

We are unable to provide financial advice. If you are unsure about the suitability of your investment speak to a financial adviser. The value of the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.