Savings & Investment
People save for various reasons:
- Investing funds that have been inherited, saved or earned
- Establishing a fund for your children's education
- Investing your Tax-free lump sum at retirement
- Building up of a 'Rainy Day' / Emergency Fund
Whether you are making provision for an upcoming event or just
saving for the longer-term it pays to be organised and thorough.
Independent investment advice is a crucial element in ensuring that
your funds are invested in a way that reflects your needs and
attitude to risk.
The Risk/Return trade-off
Generally, the greater the potential return from an investment,
the greater the risk that its value could fall. Choosing to invest
in assets with potentially higher returns could reward you with a
larger investment portfolio but could also leave you with less
money than you originally invested.
Choosing to invest in low risk assets will help to protect your
investment from negative returns but could leave you with an
investment portfolio that might not cover your future financial
requirements.
The challenge is to help you achieve your goals within your
Investment Portfolio at a risk level acceptable to you. The diagram
below broadly indicates the relationship between risk and return in
respect of the different asset classes.
Each risk profile is explained below
| Profile |
Description |
| Safety |
Safety investors are not prepared to take any risk with their
investments. The top priority for this investor is to preserve the
value of the investment. Capital security is more important than
the level of return or the effect of inflation. |
| Cautious |
Cautious investors seek a lower-risk investment that will
provide consistent returns that keep pace with inflation over the
medium term. This investor would feel uncomfortable if he/she saw a
sharp decline in the value of their investment. |
| Moderate |
Moderate investors tend to have a medium to long term time
horizon. This investor believes that it is important for their
investment to earn returns that are modestly higher than inflation
and is willing to take on a moderate level of investment risk in
order to achieve this level of return. |
| Growth |
Growth investors expect their investment to grow significantly
over the long term and are prepared to take on a higher level of
risk to achieve these returns. This investor expects to experience
some fluctuation in the value of their funds and accepts the risk
of some capital losses. |
| Maximum Growth |
Maximum Growth investors tend to be experienced investors that
want to earn higher-than-average returns on their portfolio. This
investor expects to experience considerable fluctuations in the
value of their fund and accepts the risk of capital losses. |
The five risk profiles will have different allocations to the
various asset classes and as a result each fund will have a
different level of risk.
See our Fund Manager
Selection Criteria