Understanding Risk
Risk and Investment Types
All investments involve a degree of risk and returns can never be guaranteed so it is important to choose investments that suit your circumstances. Below is a quick-glance guide to a range of investment types and their associated risks.
| Investment Type | Objective | Maximum Loss |
|---|---|---|
| Savings | Security and interest payment | Secure |
| Fixed Interest Bonds & Gilts | Rising bond markets, fixed interest payments | Initial Investment |
| Investment Trusts | Rising investment prices, income from dividends | Initial Investment |
| Exchange Traded Funds (ETFs) | Rising index or sector prices | Initial Investment |
| Irish, UK & International Stocks | Rising share prices or dividends | Initial Investment |
| Company Warrants | Rising or falling prices of the underlying financial investment | Initial Investment |
| Securitised Derivatives including Covered Warrants & Turbos | Rising or falling prices of the underlying financial investment | Initial Investment |
| Contracts for Difference & Financial Spread Betting |
Rising or falling prices of the underlying financial investment | Unlimited |