Equities could give you higher returns than other investments but they Are equities right are higher risk for you? Equities are more suited to long-term investment – that way your money can ride out short-term dips in the market years. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. Equities could grow your money Equities as part of a more than cash or bonds diverse portfolio Looking at past information, shares have tended to perform Choosing equities as part of a diverse portfolio that includes better than investing your money in bonds, cash savings other types of investment, such as bonds or cash savings, or property. Past performance is no guarantee of future means that you could lower your overall risk while still performance. potentially benefiting from the higher returns equities may Up to £75,000 of your money is secure in a bank or building give. The percentage you invest in equities should reflect society through the Financial Services Compensation the level of risk you’re willing to take. Scheme, unlike stocks and shares or fixed interest investments Different ways you can invest which are less secure. in equities Equities can carry more risk Direct: You can invest directly in equities by going through a because they’re unpredictable stockbroker or using an online trading site. This can involve The benefit of equities is that there is no limit to how high time and resources to manage your investments and can the price of a share could rise – no cap on how much you sometimes prove to be expensive. could make from your investment. But with this benefit Fund: invest through a fund and you’ll pool your capital comes a risk – there’s also no limit to how low a share price with other investors to buy equities. Different types of could fall and the company could go bankrupt, making your funds have different investment objectives, for example, shares worthless. investing for capital growth or investing for regular income, Equities are more suited to or sometimes both. long‑term investment Funds typically impose a fee to manage your investments. If you are not looking for a quick return on your money, This is normally referred to as ongoing charges. investing directly in equities or an equity fund may be right for you. Investing for the long term means although there may be short-term dips in the share price from month 7 to month, there could be an overall rise after three to five