Lowest risk - savings
When reviewing your options, you would only be prepared to look at deposit savings accounts as the return (interest rate) is known.
You would feel uncomfortable investing in assets where your money will rise and fall in value or where there is a potential for them to lose any of your money.
You are aware that while cash investments are low risk, if the rate of interest is less than the rate of inflation (The rate at which the level of prices is rising) the real value of your money will decrease over time.
Lower risk / lower reward
When investing money you are only prepared to take a low level of risk that your money and the return may fall in value.
You are prepared to invest in assets, such as fixed interest securities and up to 20% of your money being invested in shares.
You would be concerned if the value of your money invested was to suffer a short term (e.g. a period of 12 months) fall in value.
Lower risk / lower reward
When investing money you are prepared to take the risk that investing could lead to a possible reduction in the value of the return or a loss to the money invested.
You are comfortable with investing in a range of assets that have a range of risk and reward profiles and with up to 40% of their investment in shares.
You also understand that the value of the investment will go up and down over time and that the value of the money invested and the return may fall in value.
Medium risk / medium reward
When investing money you prefer to spread your investment over a range of assets but with a greater emphasis on shares.
You’re comfortable with having up to 60% of your investment in shares.
You also understand that the value of the investment will go up and down over time and are prepared to take a greater level of risk that it could lead to a possible reduction in the value of the money invested and the return received.
Medium risk / medium reward
You are prepared to take a greater level of risk to achieve a greater potential return.
You’re comfortable with having up to 80% of your investment in shares.
You also understand that the value of the investment will go up and down over time and are prepared to take a high level of risk that it could lead to a possible reduction in the value of the money invested and the return received.
Higher risk / higher reward
When investing, the primary aim is to achieve a high return on your investment, while taking a higher level of risk.
You focus on investment funds which offer greater potential for growth and appreciate that this comes with a higher level of risk. You understand that the value of the investment can change rapidly and by a large amount in the short term (e.g. a period of 12 months) and that there is a higher risk of losing the original money invested.
You also understand that the value of the investment will go up and down over time and are prepared to take a high level of risk that it could lead to a possible loss or reduction in the value of the money invested and the return received.
