A few final The level of risk that’s right for you will depend on your stage in life and your future plans. reminders If your life plans change, your attitude to risk may change too, so you’ll want a portfolio that’s flexible enough to change with you. on risk Don’t forget that not taking enough risk can be just as problematic as taking too much risk. Don’t forget… Important note Choosing your level of risk is all about the reward The views expressed in this document should you’re seeking. Think about your life plans and when not be taken as a recommendation, advice or a and how you’ll want a return on your initial investment forecast. The value of stockmarket investments (capital). Once you’ve decided this, you’ll know what will fluctuate, causing fund prices to fall as well type of risk is right for you. as rise, and you may not get back the original amount If you’re saving for retirement, for example, you may you invested. Past performance is not a guide to be willing to take a higher risk earlier in your life for future performance. potentially higher returns. This is because even if your investment doesn’t perform well, you still have time to make other plans. But closer to your retirement age, you may choose to switch to a lower-risk investment to help protect your capital. 14