Risk Warning
You must remember that your monies are invested in stocks and shares and by their very nature, the returns will fluctuate up and down.
We would draw your attention to the following risks applicable to any investment in Unit Trusts, O.E.I.Cs and Investment Trusts:
- This type of investment should be viewed as a medium to long term commitment, say 5 years or preferably more. You may get back less than you invested, especially if you encash in the early days.
- Past performance is no guarantee of future returns.
- Your capital will reduce in value if you take income payments which exceed the growth of your investment.
Additional warning regarding Technology Funds
This type of fund invests in the shares of high technology companies, such as telecommunications, software, healthcare and the internet.
Although opportunities for investment may be made on a worldwide basis, the funds used will predominantly invest in the US, which is where many of the leading technology companies originate.
Emerging economies are fuelling an explosive demand for communication equipment in their bid to compete globally. As such, unit trusts investing in these areas will incur greater risks and therefore greater volatility in return for higher potential rewards.
We wish to stress this to any client or potential client wishing to proceed with an investment into technology.
Having said this, we are confident that the higher volatility will be rewarded accordingly over the medium to longer term. It is our current opinion that clients should only invest if they are prepared to judge performance over a minimum period of 5 years and not before.