Learn About Investing

Understanding Risk

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
Covered Warrants	Rising or falling prices of the underlying financial investment	Initial Investment
Company 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

Understanding Risk

Recognising Risk

Balancing Risk

Risk and Return

Risk and Investment Types

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