Risk and volatility: What do they mean when investing?

When you’re investing risk and volatility are terms that come up often. But what do they mean for your investment performance and should they have an impact on your decisions? We explain what the terms mean and what to consider as you make investment decisions. First, whilst it can seem like the terms ‘risk’ and ‘volatility’ are used interchangeably, they do have different meanings and effects on your investments. Understanding the difference is important for calculating which investments match your goals and comfort level. Risk: This refers to the probability that ...

7 steps to take to reduce the risk of investment fraud

When you’re investing your money, you should carefully think of the investment risks involved. However, considering how attractive your investment portfolio will be to fraudsters is just as important. Figures obtained from the National Fraud Intelligence Bureau by AJ Bell suggests that investment fraud is on the rise. It’s a crime that could mean victims’ financial security and future is placed at risk. In the first six months of 2019, over 8,000 investment fraud reports were made, almost double the amount in the same period last year. The rapid surge means investment ...

What are illiquid assets?

When investing is discussed, you may have heard the terms ‘liquid assets’ and ‘illiquid assets’. But, what exactly do they mean and which assets should you hold? Following the suspension of the Woodford Equity Income Fund, the issue of illiquid assets has been featuring in the media. The fund, valued at £3.7 billion shortly before withdrawals were suspended, was found to have a large portion of its total investment in illiquid assets. This has made assets difficult to sell quickly and raise the funds necessary to allow the fund to ...

What do disruptions mean for your investment strategy?

A whole host of things can affect how successfully a business operates. A lot of these will be internal influences, but many aren’t. From changing regulation to evolving consumer habits, there are multiple disruptions that can make a business more or less attractive to invest in. Disruption is often used as something of a buzzword to describe how a certain piece of technology can affect a particular industry. But, it goes far beyond this. Technology is influencing every sector, and its often small businesses with innovative products that are having ...