Different types of Saving in a bank or building society is low risk, but your money also has the least investment and opportunity to grow here. their level Bonds and equities give you more opportunity to grow your money, but your original investment (capital) is not secure. of risk Investing in property is considered relatively stable compared with the returns from bonds and equities, but your capital is still at risk. Whatever your investment objectives may be, it is Investing in equities important to be sure that your portfolio’s balance Equities are shares in a company. The growth of your between risk and return is right for you. For example, investment depends on the fortunes of that company, taking on too much investment risk could result in your the industry it operates in and the general economic capital fluctuating, while not taking enough risk may climate. Although there is no limit to how much your mean that your investment may struggle to meet your investment could grow, there is also no limit to how capital growth requirements. much a share price can fall as well. You may not recoup Investing in a bank or your original investment. building society Investing in property Up to £75,000 of your money is safe in a bank or The amount of income you can make from property building society as it is covered by the Financial Services can fluctuate according to the general trends of the Compensation Scheme. But your money will only grow residential or the commercial property market in the in line with interest rates, so when interest rates are low, economy. Although property is considered more stable as they are currently, your capital growth is quite limited. than equities, your initial investment is still not secure. Investing in bonds For more information please see our Spin-free guides to Investing in bonds is like giving a fixed-term loan to a bonds, equities and property. company (or a government). You can receive income from interest on the ‘loan’ for an agreed length of time. Bonds are considered to carry less risk than other types of investments; however, the amount of risk varies according to how secure the bond issuer is considered to be. Bonds issued by governments are generally considered to be more secure. 6