Risk & 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
Fixed Interest Bonds & Gilts Rising bond markets, fixed interest payments Initial Investment
Investment Trusts, Unit Trusts & ICVCs 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
Covered Warrants Rising or falling prices of the underlying financial investment Initial Investment
Company Warrants Rising or falling prices of the underlying financial investment Initial Investment

Risks

  • CAPITAL AT RISK: The value of your investments can go down as well as up. You may not get back all the funds that you invest.
  • SAVINGS: Savings accounts are not risk-free. If the rate of inflation is higher than the rate of interest you are receiving, the purchasing power of your money will be reduced.
  • FUNDS: Funds do not incur commission but there may be a Fund Manager charge, which is a percentage of the value of your investment. This can differ depending on the fund.
  • INTERNATIONAL TRADING: The potential for profit or loss from transactions on international markets or in foreign denominated currencies will be affected by fluctuations in exchange rates.
  • WARRANTS: Warrants are not suitable for everyone. You should not deal in warrants unless you understand their nature and the extent of your exposure to risk.  You should be satisfied that they are suitable for you in the light of your circumstances and financial position.
  • TURBOS:  Before trading you should fully understand the nature of Turbos and the extent of your exposure to risk. While the maximum loss is limited to the initial margin payment you make, you should not open a Turbo position unless you are prepared to lose the entire margin plus any commission charges. If you are in any doubt you should consult an Independent Financial Adviser. Turbos are not suitable for all investors. They are geared instruments and their price magnifies the moves of the underlying. Your capital is at risk, if you are in any doubt you should consult an appropriately qualified financial adviser.
  • CFD/FSB: Leveraged products such as Financial Spread Betting/Contracts for Difference carry a high degree of risk to your capital, consequently losses can quickly and substantially exceed your initial investment. You may lose more than your initial investment and you may also need to make further margin payments. Financial Spread Betting/Contracts for Difference are not suitable for all investors, you should therefore ensure you fully understand the risks involved and seek independent advice if necessary.
  • CGT for FSB: You should be aware that, whilst profits made from Spread Betting are not subject to Captial Gains Tax (CGT), you are unable to offset any losses against capital gains for CGT purposes

The value of your investments can go down as well as up. You may not get back all the funds you invest.

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