If you are a low risk investor, it’s likely that, when investing your money, you look for the security that your investment’s value won’t go up and down a lot.
Other people with this attitude to risk often share a number of common traits:
- You’re happy to invest in non-cash assets, such as fixed interest securities.
- You accept that the value of your investment isn’t guaranteed and might go down as well as up.
- You’re comfortable with some of your money being invested in shares, but not all of it, and some of it may be outside the UK.
- You accept that it’s possible you may lose some of what you invested for the prospect of better growth.
- You’ll probably want to spread your money across different types of investments, which should help to reduce the risk by balancing out one type of risk against another.
Low risk funds tend to have a mix of investment types, or just fixed interest securities.