All investments carry a certain degree of risk, but some present higher stakes than others, with a higher potential upside counterbalanced by a greater chance of significant losses.

• High-risk investments provide a larger percentage chance of under-performance, lost capital or a permanent loss of value, but often with a greater chance of significant growth
• Low-risk investments are safer and more secure, meaning they are more likely to perform in line with particular expectations. This ensures a lower chance of failure, but also a lesser likelihood of significant growth

Consult with your financial adviser to decide which investment approach is likely to deliver the best outcome for you, depending on your specific goals and appetite for risk.

The basic principle of investing is that you buy or put your money into something with the aim of getting a profitable return and therefore growing your money

There are four main types of investment, which can also be referred to as ‘asset classes’:

• Shares - this is when you buy a stake in a company
• Cash investments - these are the savings you put in a bank or building society account
• Property - this is when you invest in a physical building, whether commercial or residential
• Fixed interest securities (also called bonds) - this is when you loan your money to a company or government

Different types of investments have different risks and an Independent Financial Adviser can recommend ones that best meet your requirements.

Returns are never guaranteed but you can protect yourself from common investment scams by taking a few simple steps:

• Avoid unsolicited investment offers, such as that email that promises you great riches for a low investment.
• Before you invest, check the FCA register and warning list.

Finally, if you are considering an investment, speak to an Independent Financial Adviser for regulated investment planning advice.