Managed Growth

 

Risk Profile

Description

Minimum Recommended Investment Period

 

1

 

Low

You accept exposing your investment to a small degree of risk, in return for an increased capital growth you would expect from cash savings accounts. You tend to prefer investments that expose your money to less risk of a decline in value.  However, you recognise that in order to achieve higher returns, you accept that you must take some additional risk by investing a small proportion in UK equities. You acknowledge that your investment is more likely to fluctuate in value during the investment period.

The aim of of the fund is to achieve long-term capital growth by investing in collective investment schemes across a relatively high number of different management groups.

(HFS Cautious Multi-Manager performance)

At least 5 years

 

2

 

Low to Medium

You are willing to place some reasonable emphasis on obtaining much higher capital growth than you would expect from a savings account and as such, you must be prepared to invest in a much wider/global range of funds and therefore accept that any investment is more likely to fluctuate in value during the investment period. 

The aim of of the fund is to achieve long-term capital growth by investing in collective investment schemes across a relatively high number of different management groups.

(HFS Balanced Mult-Manager performance)

At least 7 years

3

 

Medium

You are willing to place a lot more emphasis on obtaining much higher capital growth than you would expect from a savings account and as such, you must be prepared to accept that any investment is more likely to fluctuate in value during the investment period, with much sharper gains and losses. 

The aim of of the fund is to achieve long-term capital growth by investing in collective investment schemes across a relatively high number of different management groups.

(HFS Active Mult-Manager performance)

At least 10 years

 

4

 

Medium to High

You are willing to place a lot more emphasis on obtaining much higher capital growth than you would expect from a savings account and as such, you must be prepared to accept that any investment is more likely to fluctuate in value during the investment period, with much sharper gains and losses.

The aim of of the fund is to achieve long-term capital growth by investing in collective investment schemes across a relatively high number of different management groups.

(HFS Global Mult-Manager performance)

At least 15 years

 

Note: There is a gradual increase in risk from portfolio 1 (lowest risk) to portfolio 4 (highest risk)

 

Titl

An explanation of volatility

The relative rate at which the price of a security (your investment) moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock (your investment) moves up and down rapidly over short time periods, it has high volatility. If the price (fund value) almost never changes, it has low volatility.

When considering volatility, which historically tells us the more risk you take, potentially the greater the reward; the period of investment is critical. There is little point of investing in a high risk fund for less that 10 years because the fund value will fluctuate more shaprly and more often than lower risk funds. The fund must be given time to recover, which can take several months or several years.