In your portfolio you will have a spread of investments. It is essential that you understand the risk involved. In general terms every single investment carries with it an element of risk. If you leave your money ‘under the bed’ you may have it stolen and at best it will lose its purchasing power as the result of inflation.
We under note details of investments you may have in your portfolio. Please ensure that you understand the risks involved and if you do not please query any aspects.
| INVESTMENT | CAPITAL GROWTH | INCOME | RISK |
|---|---|---|---|
| Bank or Building Society account National Savings Income Bond | None | usually variable | Capital loses value throughinflation |
| National Savings Certificates/Guaranteed Growth Bonds | Guaranteed | Fixed | Income loses value if interest rates rise Capital loss through inflation |
| National Savings Pensioners Bond | None | Fixed | Income loses value if rise in Interest rates. Capital loss through inflation |
| TESSA/TOISA CASH ISA | None | usually variable | Capital loses value through inflation |
| Guaranteed Income Bonds | None | Fixed | Income loses value if rise in Interest rates. Capital loss through inflation |
| Gilts | Possible | Fixed | Income loses value if rise in Interest rates. Capital loss is possible |
| Corporate Bond | Possible | Fixed | Income loses value if rise in Interest rates. Capital loss up to 100% |
| Zeros | Possible | None | Capital loss up to 100% possible |
| Gilt & Fixed Interest Unit Trust/OEIC PEP/ISA | Possible | variable | Capital loss is possible up to 100% |
| Corporate Bond ,Unit Trust/OEIC/PEP/ISA | Possible | variable | Capital loss is possible up to 100% |
| Equity based unit trust / OEIC / PEP / ISA / Investment Trust | Possible | variable | Capital loss is possible up to 100% |
| Property unit trust/Investment Trust | Possible | variable | Capital loss is possible up to 100% |
| Life Assurance Bonds Unit Linked/with profits | Possible | Fixed or Variable | Capital loss is possible up to 100%. Income withdrawal may reduce capital value |
| Unit Linked/with profit Pension funds | Possible | N/A | Value of units may fall *Capital loss of 100% is possible |
| Shares | Possible | variable | Capital loss of 100% is possible |
*Withdrawals from with profit funds may be subject to a market value adjustment factor. Early withdrawal penalties may apply on all unit linked products. In adverse economic conditions a considerable delay could occur when en-cashing a holding in a property bond.
NOTE: Be aware that the Company Provider with whom you have made your investment may become insolvent or have difficulties meeting their liabilities.