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Most investments contain some element of risk. The relative amount of risk will also vary between individuals. For example, a millionaire
will almost certainly view certain investments differently to a pensioner on a fixed income.
See table which provides a guide to the relative risk associated with some of the most popular
types of investment:
| Product |
Risk |
|
Bank/Building Society accounts
|
Very low
|
|
‘Guaranteed’ products
|
Low
|
|
Fixed interest investments eg Government bonds
|
|
Corporate bonds
|
|
Cautious managed funds
|
|
Balanced managed funds
|
Medium
|
|
Adventurous managed funds
|
High
|
|
Single country funds eg Japan
|
|
Individual shares in smaller companies
|
Very high
|
 |
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