Risk Warning

The value of any investment can fall considerably in certain situations and not even cash deposits can be perceived as low risk, in the current economic climate. The income from these investments can also fall over the years. Past performance must never be perceived as a guide to future performance. Please note the following: 

– You may be subject to an initial charge, which will impact on any redemption taken.

– You may not get back all that you originally invested, particularly in the case of early redemption. Equity investment must be perceived as a long-term holding. 

– Any tax relief referred to is that which is currently available. Levels and bases of, and reliefs from taxation may change. In addition, certain investments and products, which have a particular tax benefit could lose that benefit retrospectively. 

– Please be aware that investments in equities, fixed interest investments (including corporate bonds), infrastructure funds, zero dividend preference shares, income unit trusts, growth unit trusts, with profits funds, investment trusts and exchange traded funds are STOCK MARKET INVESTMENTS and subject to market volatility. 

– You should bear in mind that any investments exposed to foreign currencies, e.g. international investment trusts and unit trusts can be subject to additional volatility due to the movement of sterling in relation to the other currencies held. 

– Property/Infrastructure funds. Returns are dependent on the market conditions and the ability of the property managers to lease property. You may not be able to encash your investments whenever you choose, because the land and buildings in the fund may not be easy to sell, so the fund managers have the right to postpone repurchasing units. The value of land or property is generally a matter of a valuer’s opinion rather than fact.

You should also bear in mind that where we recommend an investment in a fund that purchases shares in property companies or is quoted as a listed company then the risk profile will be higher than a conventional fund although liquidity may be easier. Property funds are subject to supply and demand like most other investment and values can fluctuate in the same way.

The Financial Ombudsman Service website can be accessed at www.financial-ombudsman.org.uk