A recent survey conducted by a leading fund manager in the Irish market asked 1,000 people as to what was stopping them moving money from poorly performing bank deposit accounts to investment bonds. We were surprised at the results!

  • 39% said the number 1 reason for not moving was a perceived lack of access to their money in an emergency
  • 18% were concerned that investment options would be too risky for them
  • 10% were just unaware of alternative options

Source: Zurich Life

With interest rates at historic lows, the returns you are getting from savings held in bank accounts are probably not delivering the long term returns you need. Over the last number of years, returns from investments such as equities and bonds have far outstripped that of cash. That is why we see more investors once again looking at alternatives to holding money on deposit.

AI International Finance Award LogoHaving recently received an award as Recognised Leader in Asset Allocation, we at Hegarty Financial Management Ltd are here to guide you right the way through to ensure your investment goals are to the fore of your financial plan and you are comfortable with the level of risk being taken.

Saving for the future is essential if you want your goals to be achieved and it is important that you make use of all the investment options available to you.

Generally, investors are rewarded for taking some risk with their investment and assets such as equities, property and bonds have the potential to earn you higher returns that cash.

 

The importance of understanding your risk/reward profile

 

we will conduct a Risk Assessment which will determine the level of risk you are willing and able to take. Investment Funds have now been classified under the European Securities & Markets Authority (ESMA) into risk bands which run from 1 to 7. 1 being no risk to 7 being very high risk. This scale is based on the volatility of a fund over the last 5 years and categorises them according to volatility bands. For the remainder of 2015 we will provide you with a complimentary Risk Assessment Report without obligation.

Lower Risk and Reward

  1.  If you are a ‘very low risk’ investor, you are not willing to accept any significant risks with your money, accepting the prospect of low returns to achieve this.

 

  1. If you are a ‘low risk’ investor, you are likely to accept limited risks with your money and will want to try to avoid large fluctuations in the value of your investment. accepting the prospect of more modest returns to achieve this.

 

  1. If you are a ‘low to medium risk’ investor you are likely to accept some risk in return for the potential of higher investment gains over the long-term. You will want to try to avoid large fluctuations in the value of your investment, but accept there will be some fluctuation, particularly over the short-term.

 

  1. If you are a ‘medium risk’ investor, you are likely to accept significant risk in return for the potential of good investment gains over the long-term. You accept there will be significant fluctuations in the value of your investment, particularly over the short-term. However, you will want to limit the amount of your money held in more risky investments.

 

  1. If you are a ‘medium to high risk’ investor, you are likely to understand that the value of your investment can go down and up sharply with the potential for greater returns over the long-term.

 

  1. If you are a ‘high risk’ investor, you are likely to aim for high possible returns and accept higher levels if risk, recognising that the value of your investment may fluctuate very sharply, particularly over the short-term.

 

  1. If you are a ‘very high risk’ investor, you are likely to aim for the highest possible returns and accept the highest levels of risk, recognising that the value of your investment may fluctuate very widely, particularly over the short-term.

 

Please click here for our Risk Assessment Questionnaire, we ask that you complete and return in order for us to provide you with your confidential Risk Assessment Report.