Let's talk about the risks

different colored aging leaves

Introduction

There is no reward without risk, and if you are unwilling or unable to take risk then investing is not for you. However, if risk is something you feel able to accept, we are committed to managing your investments in a manner that prioritises the safety of the money you invest with us. That said, it is always worth remembering that, when investing, you may occasionally lose money.

"Successful investing is about managing risk, not avoiding it” - Benjamin Graham

For those who are able to take risk but are risk-averse, we ask you to consider the “cost of certainty” that comes with remaining "risk-free". However, this certainty is flawed in that the value of your money most likely will be eroded by inflation, and without a plan, you could be left worse off. For example, you may end up not having the freedom to retire when you choose.

Below you will find the three main risks we felt are key to helping you better understand our proposition. A more comprehensive list will be included in an assessment summary document that we'll share with you during the sign-up process.

Risk #1 - Losing money

There is always a possibility that you might lose some of the money you invest. An investment account is not the same as a bank account. While we try to invest in a way that minimises the risk of loss, we cannot guarantee that it will be avoided. This is why we have a “no-win, no management fee" pricing structure - this aligns our interests with yours, and ensures you don't pay us if you don't make money.  In short, if your portfolio is worth less than what you invested, we will waive our portfolio management fee. And by not charging a fee, more of your money remains invested, helping it to recover.

Risk #2 - Not enough time 

Markets go up and down with time, therefore, when they hit a downturn, there needs to be enough time for the investments to recover from any losses. The portfolio we offer will only generate a small return in the first few years, before increasing with time. This is why we do not think it is suitable that you invest if you think you will need the money within the next three years. You are better off keeping it in a bank account; you might get a lower rate of return on your money, but you’ll have taken zero investment risk.

Risk #3 - Under-performing 

The portfolio we offer may not perform as well as other investments. The returns will not be comparable to investing all your money in stocks or other higher risk investments. For example, if the stock market goes up 50% the week after you invest, your portfolio with us might only increase 5%. The reason for this is that in the early stages of investing with us, we will allocate your money to lower risk and therefore lower return investments. Ultimately, we are driven by sound risk management, not returns themselves.

That said, you may sell and withdraw money at anytime without penalty. It normally takes 1-2 working days for us to sell once we receive your instruction and then 3-5 working days before money is in your bank account.