1

Very Low Risk

• When investors are unwilling to accept any significant risks
• They accept the prospect of low returns on their investment
• It is only designed for short term investment

2

Low Risk

• When investors are likely to accept limited risks but also want to avoid large fluctuations in the investment value
• They accept the prospect of more modest returns on their investment, the aim of this type of risk is to provide a return in line with or slightly better than deposits

3

Low to Medium Risk

• When investors are likely to accept some risk in return for the potential of higher investment gains over the long term, this type of risk has the potential for returns in excess of deposits but does not promise a minimum return at any time
• They try to avoid large fluctuations in the investment value, but accept that there will be some fluctuation, particularly over the short term.

4

Medium Risk

• When investors are likely to accept significant risk in return for the potential of good investment gains over the long term, this type of risk has the potential for returns in excess of deposits but does not promise a minimum return at any time
• They accept significant fluctuations in the investment value, particularly over the short term but want to limit the amount of money held in more risky investments

5

Medium to High Risk

• When investors are likely to understand that the investment can go down and up sharply with the potential for greater returns over the long term
• Investors’ capital is not secure and can fluctuate, sometimes significantly and investors may get back less than they originally invested.

6

High Risk

• When investors are likely to aim for high possible returns and accept higher levels of risk.
• They recognise that the investment value may fluctuate very sharply, particularly over the short term
• The focus here is on maximising the potential return for investors rather than minimising risks.

7

Very High Risk

• When investors are likely to aim for the highest possible returns and accept the highest levels of risk
• They recognise that the investment value may fluctuate very widely, particularly over the short term
• In a worst case scenario, investors in this very high risk category could lose all of their original investment