Attitude to risk
Whenever you make an investment you expose your savings to a degree of risk. Working out how much risk you can afford to take and, perhaps more importantly, how much risk you are prepared to take, is vital in helping you to develop the right investment strategy.
What do we mean by investment risk?
Before you can work out how much risk to take, you need to understand what we mean by investment risk. You can find out information on the risks associated with a particular fund by reviewing the relevant fund page.
How much risk can you afford to take?
How much risk you can take with your savings will depend on several factors, including how long you intend to invest for and how much risk you are taking with the rest of your savings.
How much risk are you comfortable with?
The amount of risk you decide to take will be influenced by the level of return or income that you want to achieve from your investment and by the amount of risk that you are generally comfortable with.
Speak to a professional adviser
If you are in any doubt about the suitability of an investment, please speak to an independent financial adviser.