Understand your investment needs

Different type of funds involve different levels of risk and what you choose will depend on your circumstances and financial objectives.

Of course, you may want to do what many experienced investors do and diversify your investment by holding a combination of lower risk and higher risk funds. Balancing your portfolio can enable you to smooth out the peaks and falls often seen in turbulent stockmarkets.

And if your circumstances change, readjusting the balance is simplicity itself.

Balancing risk and reward

While understanding that different types of investments carry different levels of risk, the important thing is to consider the potential rewards against the risks. A higher level of risk normally means that the potential reward to the investor is greater, although the chance of actually losing money is also greater. For example, unlike a building society account, the value of stockmarket investments will fluctuate, but, if held for the long-term, higher risk equity investments have tended to provide a higher return than lower risk investments such as cash. Please be aware though, that past performance is no guarantee of future returns.

The risk/reward spectrum This diagram illustrates the risk/reward spectrum. The investments towards the bottom carry less risk, but have less potential for providing a higher return. Those at the top end carry more risk but also have more chance of giving you a higher level of return. Deciding on what level of risk is right for you will depend on your own personal circumstances. Your financial adviser will be able to assist you in determining a portfolio of investments suited to your risk-tolerance and other needs. This diagram is intended for broad guidance only; the risk profile of different investments can vary and cannot be predicted.

What do you want your investment to provide?

A regular income?

Insight has a range of funds designed to achieve income. These include equity based funds and a range of fixed interest (or bond) funds.

Or long term capital growth?

If your priority is to maximise the growth of your capital, we have a variety of funds to choose from. The range consists of equity-based funds investing in a broad range of international sectors and markets.

Or a combination of both?

If you want your investment to provide you with income and the potential for capital growth, our Diversified High Income (DHI) Fund may be the right fund for you.

If you have any questions regarding our range of funds or products available please contact your financial adviser or call our Investor Services team on 0845 777 2233.