_ 1 Stop Savings And Investment Advice _ Guide To Risk

Guide to ISAs - How To Choose An ISA Step 2 - Risky Business. What level of risk do you want to take with your money to get a return?  What we all want is no risk and fantastic returns.  Unlikely!  Returns are generally linked to the risk level that you are prepared to take. The following may be helpful as a guide: Low to Medium Risk - consider funds to be low to medium risk where they have a lower level of volatility. This means that the fund is unlikely to move wildly up and down in value, although some movement is expected. Examples of where fluctuations are likely to be lower are: Corporate Bonds, Fixed Interest Investments, Preference Shares, Cash Deposit Funds, UK Blue Chip Companies, Safety Net Funds and Cautious Managed Funds. Medium to Higher Risk - consider funds to be medium to higher risk where their level of volatility is greater than the small movements noted for low to medium risk funds. However, although the movement up and down in value will be greater, I do not consider that they will wildly fluctuate. Examples of where fluctuations are likely to be moderate are: International Fixed Interest, UK Income , UK Growth, UK Medium And Smaller Companies, Higher Income Investments, Global Growth, North America, European, Fund Of Funds Unit Trusts and Balanced Managed Funds. High Risk - consider funds to be of a high risk nature when the level of volatility is high. This means that the value of the fund can move up and down wildly.  Examples of where fluctuations are likely to be greater are: Smaller Companies, Far East, Japan, Latin America, Emerging Markets, Single Country Funds i.e. concentrated in one country, except UK and USA, Funds Concentrated In A Specific Country And Sector i.e. Japan Smaller Companies and Stock Market Or Aggressive Managed Funds. Use our ISA provider search facility to find an ISA to suit you.