Your Guide to Investment Risk

This new Guide to Risk from the Spectrum IFA Group is an insight into many different types of risk associated with money and investments. Why have we chosen to issue this now? Our Chief Executive, Michael Lodhi, explains

“When I joined the industry, understanding risk was much easier than today. Cash in the bank was considered low risk or even no risk at all. Government Bonds were considered slightly higher up the risk scale and Equities (shares) were higher risk again. Property was not considered risky and gave its name to an English expression, “Safe as Houses”.

In 2008 everything changed. Banks failed, Governments were under financial stress, Stock Markets fell.”

And our clients are saying to us that we want “low risk” investments, although in most cases people use one word “risk” when in fact there are several different types of risk. These different types of risk can apply across different types of investment and can be more significant for one investment type than another, for example Government Bonds. In the guide we list the risks associated with the following investments:

• Bank accounts and cash
• Bonds
• Property
• Equities (Shares)
• Precious Metals

Of course, we cannot know the future, even with the vast experience we have within the Spectrum Group. And it is precisely because the future is unknown that the need to understand the risks with the various types of investments is important and a strategy put in place to reduce the risks.

If having read the guide you have any questions about investment risk, or you would like a confidential review of your investments, please email Barry Davys.