What are the risks of investing?

There’s no way around it, investing means accepting the risk you could lose some or all of your money. This is because stock market-based investments can go down in value as well as up. But in return you’ll have the opportunity to achieve positive returns over the long term, which can make a big difference.

As a general rule, the more risk you’re prepared to take, the greater the potential rewards. What’s important is to understand the level of risk you’d be comfortable accepting, and the amount of money you could realistically afford to lose and still meet your financial objectives. So your money is invested in a way that is appropriate for you.

Our approach

Your Skipton financial adviser will devote time helping you find out your feelings to risk and reward. You’ll be asked to complete a short questionnaire that will help us determine your risk appetite.

We’ll discuss your results in detail and an investment approach to suit. This gives you confidence to make informed decisions, knowing the risks that come with it and you are comfortable with them.

Importantly, it means the advice we offer you will match your feelings about risk and reward. We’ll only suggest you invest in funds that you’d be comfortable considering. Find out more about our approach on our financial advice website.

Staying the course

Accepting risk means understanding the value of your investment could fall as well as rise, and that you could lose some or all of your money. There could be periods where you’re affected by short-term stock market volatility, but it’s always important to keep the long-term picture in mind. That's why we would recommend investing for a minimum of five years in stock market based investments.

Our expert says...

Illa Pujara

We’ll always be available to answer your questions and for an ongoing fee offer an option to monitor your investments for you. That way you’ll have peace of mind that your investments are on track to achieve your goals.

Illa Pujara, Skipton Financial Adviser

Uncomfortable taking any risk?

Investing isn't for everyone. If you're not prepared to take any risk, we offer a range of easy access or fixed term savings accounts that could help you achieve your goals.

Your next steps

If you're ready to talk to us about investing, then you can find out more on our financial advice website. Here you will be able to find your nearest financial adviser, book a financial advice review or give us a call and talk to a member of our Review and Financial Advice Team.

Our recommendations are likely to include stock market-linked investments. These aren’t like building society savings accounts, as your capital is at risk and you may get back less than you invest. The value of your investments and any income from them may fall as well as rise.

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