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Financial Services

Investments

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These pages provide generic information about various aspects of financial services and provide some ideas and indicators about possible areas of need. We hope they are helpful but they do not, on their own, add up to proper investment advice and we cannot take responsibility for anything you do in reliance on them without further discussion with us. Do not make a decision based upon the information contained within these pages alone. They are not detailed or comprehensive enough to enable you to make a correctly informed decision

See Also

Risk V Reward

Different people have different attitudes to risk. You need to be clear about the degree of risk you are willing to accept before undertaking any kind of investment. The following is an example of a Risk/Reward profile

Risk Pyramid

Risk Profile

  • These risk categories are for guidance only. Your personal advisor may have chosen different ways of categorising risk
  • Different people have different attitudes to risk
  • You need to be clear about the degree of risk you are willing to accept
  • This is a difficult area as everyone views risk differently
  • There is a balance between risk and potential return – generally speaking higher risk investments usually mean that higher returns may be possible BUT also the risk of losing money is also increased.
  • Lower risk generally means lower returns but a lower risk of losing money – nothing is ever set in stone though!
  • Risk is also related to how long investment is undertaken. With stocks and shares you should be taking a longer term view – most commentators advise that a 5 year investment time frame is wise
  • Risk can also be in terms of how you invest. Investors wishing to minimising risk would consider a broader investment spread as opposed to investment in a specialist area

Remember past performance is not a guide to future returns. The value of investments and the income from them can go down as well as up. The level of tax benefits and liabilities will depend on individual circumstances and may change in the future. Exchange rate fluctuations may cause the value of underlying overseas investments to go down as well as up. Some Funds investing in specialist sectors or areas carry greater risks due to the potential volatility of market sectors into which the funds invest.

You should not invest without consulting a Key Features Document and supporting literature. If you are in any doubt about the suitability of this Investment you should also contact us before investing.

Unit Trusts

Unit trusts are a popular investment vehicle, and in their more recent format they are more usually referred to as 'open ended collective investments' which put the cash of many investors into one fund a 'pooled fund'. This system allows investors to invest "collectively" which has the benefits of spreading and reducing risk and keeping costs under control. Unit trusts allow you to invest in the stock market but enable you to spread your risk and benefit from expert investment management.

There are many unit trusts to choose from across a wide range of investment sectors. The managers of the trusts can buy and sell within the trust without having to pay any tax, however tax liabilities can arise on dividends and unit sales by the holder.

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