Investment approach and fund risk profiles
While there are a number of ways to evaluate risk, the following definitions may help you decide on the appropriate investment approach for you.
Secure
These investments provide safety to the amount invested and can be expected to offer relatively low growth over the medium to long term. They cannot fall in actual value, but can fall in “real” value due to the effects of inflation.
Cautious
These investments are expected to have a relatively modest risk to the capital value and/or income. They have the potential to provide income, and/or, over the medium to long term, relatively modest capital growth. The capital value may fluctuate, although some products may offer an element of capital protection.
Balanced
These investments carry a risk of loss to capital value but have the potential for capital growth and/or income over the medium to long-term. Typically, they do not have any guarantees and will fluctuate in capital value.
Progressive
These investments are expected to have a relatively significant risk of loss to capital value, but with the potential of relatively more capital growth over the medium to long term. They do not offer any guarantees and will fluctuate in capital value.
Adventurous
These investments carry a relatively much higher risk of capital loss but with the potential for relatively higher capital growth over the medium to long term. They may be subject to a considerable level of fluctuation in capital value. They do not offer any guarantees.
Specialist
These investments carry a very high risk of capital loss, but with the potential for a higher return over the long term. They are very volatile and are only suitable for clients who can afford to, and are prepared to, risk the entire capital value. They do not offer any guarantees.
