Understanding Risk

Risk and investment types

All investments involve a degree of risk and returns can never be guaranteed so it is important to choose investments that suit your circumstances. Below is a quick-glance guide to a range of investment types and their associated risks.

Investment Type Objective Maximum Loss Savings Security and interest payment Secure Fixed Interest Bonds & Gilts Rising bond markets, fixed interest payments Initial Investment Investment Trusts, Unit Trusts & OEICs Rising investment prices, income from dividends Initial Investment Exchange Traded Funds (ETFs) Rising index or sector prices Initial Investment UK Stocks & International Stocks Rising share prices or dividends Initial Investment Company Warrants Rising or falling prices of the underlying financial investment Initial Investment Securitised Derivatives including Covered Warrants Rising or falling prices of the underlying financial investment Initial Investment Contracts for Difference Rising or falling prices of the underlying financial investment Unlimited