The greater the return you are looking for from your savings, then of course the greater the investment risk you will be taking.
I’m sure you will have seen the phrase ‘ the value of your investments can go down as well as up’. Well this is true of all investments, from the interest rate you receive on your cash to the value of your property or share portfolio. The things that we look for when advising our clients is how long do they wish to invest for, what returns do they need to meet their financial goals, and what is their overall financial situation.
After all, an investment that loses £10,000 in the short term may not be of significant relevance to somebody who has a lot of money, but if you only have limited resources then of course this will be of very great concern. Most definitely the longer you leave your money invested they the greater the potential return, as well as the ability to recover from short-term fluctuations in their value.