Some things you should know before you invest
| Portfolio | Investment aim | From | Is this portfolio for you? |
| Adventurous | Long term capital growth | 100% equity based funds | Do you want an aggressive investment strategy with rapid growth potential? Are you willing to accept a greater degree of risk to achieve this? Suitable if you're prepared to take a long-term view of your investment and understand the volatility and associated risks of certain markets. |
| Balanced | Long term capital growth | 70% equity based funds 30% fixed interest funds |
Do you want a higher level of capital growth potential over the medium to long term than is offered by the Cautious Portfolio? Are you prepared to take a slightly higher level of risk than the cautious portfolio to achieve this? Greater growth potential than the Cautious Portfolio due to a greater concentration on equity funds in this portfolio. |
| Cautious | Long term capital growth | 30% equity based funds 70% fixed interest funds |
Are you a first time investor? Do you want to invest in low risk securities, perhaps to plan for retirement or to invest a nest egg for the future? A high proportion of this portfolio will be invested in funds containing fixed interest funds. These funds typically provide a fairly steady return and are lower risk than equity funds because they are less prone to sudden price movements. A small proportion is invested in equity funds, which invest in company shares to provide the potential for steady and reliable capital growth. |
Interest rates can cause the value of bonds to fall as well as rise. Generally they rise when interest rates fall and fall when interest rates rise.