About risk and return

Investing in equities (shares), bonds or cash carries different levels of risk that need to be considered against potential returns.

A higher level of risk normally means that the potential for growth is greater, but there is also a greater possibility that your investment might go down.

The diagram below illustrates the risk/return spectrum.

The risk return spectrum

The risk return spectrum

There is a risk that your investments could fall in value, but over the long term, they should have time to recover from any setbacks and could go on to achieve greater levels of growth.

Remember it’s not how much your account has gone up or down in the past few days, but how much it is going to be worth in 20 or 30 years’ time.

If you want to achieve significant levels of growth, you need to tolerate some investment risk.

You may find that you can manage this risk through diversification - spreading your money across funds that invest in a variety of markets and types of investment.

Please note that value of investments and income from them can go down as well as up, so you may not get back the amount you invest. Fidelity Personal Investing does not give personal recommendations. If you are unsure of the suitability of an investment you should speak to an adviser.

Here to help

If you have any questions about any of our products and services – from choosing funds to managing your account – our UK-based customer service centre is waiting to take your call. 

Here to help

0333 300 3350

Monday to Friday, 8am to 6pm
Saturday 9am to 6pm.