All types of investment carry a degree of risk and it is important that you understand and are comfortable with the level of risk to which your capital could be exposed. We would recommend that you consult with a financial adviser if unsure in any way.
There is the potential for loss of your original investment. The degree of investment risk will depend on the fund's risk profile. We would typically expect investments that are perceived as lower risk to offer less potential for loss but with potentially lower returns, whereas we would expect higher risk investments to generate higher returns albeit with the extra risk of potential loss. However, there are no guarantees as to how a type of asset, sector or region will perform in the future.
Inflation could erode the value of returns from your investment.
There is a risk that the entire market of an asset will fall, affecting the value of assets and the return on your investment.
There is no guarantee that the investment objective of the fund will be achieved.
Past performance is not a guide to future returns. The price of shares and any income from them can go down as well as up and there is the possibility of a loss to your original investment.
The levels of taxation and of relief from taxation will depend upon individual circumstances.
There may be a variation in the performance between funds with similar objectives due to the different assets selected. Performance of a fund will be affected by the fund manager's investment decisions.
If you withdraw part of your investment, or take an income greater than the natural income from, or growth of, your investment, there is a risk that you could get back less than you originally invested.
The fund may invest directly into, or be exposed to via its underlying investments, a variety of assets, sectors or regions, all of which carry specific risks which could impact returns. The main risks are summarised on this document, with further detail available in the fund's prospectus.
Concentration: Funds that have a strong focus on a particular asset, sector or region, can carry a higher risk than funds with a more diversified portfolio.
Derivatives: This is a financial contract whose value is related to the value of an underlying asset or index, often used with the aim to manage risk or enhance returns, and whilst their use is not necessarily expected to increase risk within a fund, they could expose the fund to higher levels of volatility from time to time.
Equities: As an asset class, equities can experience higher levels of fluctuation than bonds or money market securities.
Geographic concentration: Funds focused on a specific country or geographic region can carry greater risk than portfolios that are more internationally diverse.
Legal/tax: Arising from a change in legal/tax regulations or the application of them.
Liquidity: During difficult market conditions, some securities or larger holdings may become more difficult to sell quickly at a desired price.
Market: The risk of a fall in price of a particular asset type.
Operational: Occasionally processes fail. This is more likely to happen with more complex products or investments in overseas markets, such as emerging market countries, which may not have the same level of safekeeping, infrastructure or controls as more developed markets.