There are 4 main types of investment, which are often called Asset Classes. Each one works in a different way and carries its own particular rewards and risks.
Money on deposit
Bricks & mortar, or property shares
Shares in individual companies
Loans to companies or governments
The investment funds ( unitlinked ) that we recommend will generally hold some or all of these different asset classes. We use risk profiling tools to ensure that your investments meet the level of risk tolerance which is suitable to you. With decreasing deposit rates we offer an alternative with potentially much higher returns. We have access to a wide range of funds across different asset classes and investment companies. A unitlinked fund is an investment plan, which combines your money with money from other investors and buys units in a fund. The number of units you get depends on how much you invest and the price of the units at the time you buy. You can invest either a lump sum or make regular investments, depending on the fund.
What risk is involved?
You can choose from a range of different funds to suit your attitude to risk. These include lowrisk deposit- type funds, mediumrisk funds and higherrisk funds that are mostly invested in the stock market. Almost all unitlinked plans involve capital risk. Unitlinked funds are openended, which means you can withdraw part or all of your investment at any time. However, you should be prepared to hold onto your investment for at least five years to increase your chances of getting a return as investment markets can be volatile over short periods and the bulk of the plan charges are paid in the first five years. Also, if you need to withdraw in the first few years you may have to pay an early encashment fee.