Risk rating

How risky are the FuturePlanner funds?

Each of the FuturePlanner funds has been given a risk rating to help you think through which funds to use, given your attitude to risk.

The risk rating is an indication of how volatile or variable the fund value is likely to be on a day-to-day basis. It also reflects the fund’s potential for loss. The rating is, therefore, a measure of how much the fund value could change in the short term with a focus on risk on the downside.

Please remember that pension investments are typically a long-term activity. For example, a fund like the Cash fund can be shown as low risk because returns are unlikely to be variable and the potential for loss is low. However, if a member invests in cash from an early age for many years, the Cash fund could be seen as a high-risk strategy over the long term because the increase in fund value may not keep up with inflation.