Is investing my money risky?

This is a question many of us ask when contemplating the right investment route for our needs. The simple answer is yes, there are risks involved with most investments. That's why getting the right advice is so important.

We offer all the advice and guidance you need when it comes to investing your money.

We want you to be fully comfortable with the risks before you decide to invest. It’s also important that we develop a strong understanding of your overall risk appetite, so we can find a route that’s right for you.

This is why we introduce our Risk and Reward assessment to all our customers.

What is this?

This is used to determine your Risk and Reward appetite – the level of risk you’re prepared to take as a trade off for receiving a potential level of return.

There is no guarantee that any investment will deliver a certain return. Typically some funds adopt a relatively low level of risk (which restricts the returns they have the potential to deliver) whilst others adopt a higher level of risk in an attempt to achieve higher returns. The more risk you take, generally, the greater risk there is that you could lose some or all of your capital.

There are so many factors to consider – not least the length of time you have to invest towards specific goals – and that’s why it’s absolutely vital you speak to an expert.

It is incredibly important that you understand and feel confident about the level of risk your money is exposed to. The way we assess your Risk and Reward is individual to you and your unique needs. And as part of this personalised approach, we’ll always make sure your risk appetite is consistent with your objectives or outlook.

How does it work?

1. Firstly, all you need to do is complete a short and simple questionnaire with ten multiple-choice questions.  

This will give us an idea of your attitude to risk – establishing the risk profile you’re most suited to – found on our Risk Spectrum.                

2. We’ll then explore this Risk and Reward profile with you in detail, so we can ensure it's a true reflection of your views. 

This includes discussing the level of returns historically achieved over the medium to longer-term, any volatility experienced and how inflation could affect the subsequent value of any investment.

3. We’ll discuss what we consider poor, average and good returns in detail – so you have a good understanding of what each mean to you.

After the Risk and Reward process, you should now have:

  • Reassurance and confidence that we fully understand your Risk and Reward appetite
  • Confidence that you have the right amount of money invested in the most suitable investment products

If you need further guidance understanding your risk and reward appetite, your adviser will happily go through this with you further until you’re 100% confident that you’ve chosen the right one.

Many of the products offered by Skipton do not provide the security associated with building society or bank deposit accounts. Your capital is at risk so you may get back less than you originally invested. The value of any investments and the income from them may rise as well as fall. Past performance is not a guide to future returns. Economic and market conditions experienced in the past may not be repeated in the future.