Ups and Downs

Investing is not without risk. Anyone who suggests otherwise is misguided.
The idea of taking risk is to increase returns. But how much risk should you take, what is the extra return you might get, what if it goes wrong?

Understanding risk and return is one of the most important foundations of investing and financial planning.

We have produced a simple presentation that advisers can rebrand and use in discussion with clients to help them understand risk and return and the importance of time.

The Ups and Downs presentation is available to financial advisers only in our adviser centre:

It looks at the returns and risks of three different Investment Association sectors. The data shows the average return of the funds in each sector over different time periods.

They are the Mixed 0-35% Shares, the Mixed 20-60% Shares and the Mixed 40-85% Shares sectors – for ease we will refer to them as Cautious, Balanced and Growth.

We have compared the returns over 1, 3, 5, 15 and 25 years (and 2008 – the Credit Crunch).

Below shows the return of each sector over each of the last 25 years:

Advisers will need to compliance approve the presentation in the normal way before using it.