4 guides
What fixed income, equities, inflation and interest mean
Four words do most of the work in any conversation about money. Here is what each of them means, without the jargon.
How much risk is right for you?
Every level of risk is a trade
More potential growth comes with bigger falls along the way and a longer period before you should expect to need the money. This tool shows what each level generally involves. It asks you nothing and stores nothing.
Roughly even. Growth matters, but so does sleeping at night.
The rest is generally in bonds and cash.
The trade-off. This is where most long-term savers sit. You get a real chance of growth above inflation, and you have to be willing to watch the balance drop and not act on it.
- A bad year
- −10% to −20%
- Falls of around 10 to 20 per cent have happened, and will happen again.
- Time it suits
- 5+ years
- Generally suits money you can leave alone for at least five years.
- What it holds
- Somewhere near half in shares and half in bonds, spread across regions and sectors.
Illustration, not advice. This is an illustration of what different levels of risk generally involve. It is not a recommendation, it takes no account of your circumstances, and it is not personal advice. The figures are indicative ranges rather than forecasts. Past performance is not a guide to future performance and you may get back less than you invest.