Risk and reward

Many of us dream of investing £1 in a lottery ticket on a Saturday afternoon and to see this small investment turn into millions of pounds by 8pm that evening. To the lucky few this has happened but for most of us, unfortunately, that £1 will never be seen again. This is a form of investment but it should be considered to be one of the highest risk forms. The purpose of this example is to show that the higher the risk associated with any investment the higher the potential gain but, along with this the higher the probability of loss (in this example total) can be.

Investing is all about assessing the amount of risk that you are prepared to take with you money and weigh this up against the potential reward or loss that this is likely to represent.

The sections noted here are only a general guide and Bond Financial Limited will be able to explain and guide you through all the options available.