Risk Profile 1 (Secure)
The Secure investor will not accept any risk to the original money invested and accepts that the growth will usually be low, sometimes less than inflation. A secure investor would usually invest in bank or building society accounts, National Savings products and deposit based investments. Investment will be made where the value of the capital investment cannot fall. An example is our NPI Deposit fund, which offers 100% security in that the unit price is guaranteed never to fall.

Risk Profile 2 (Cautious)
The Cautious investor aims to achieve modest returns over inflation in the medium to long term and will accept a low level of risk to the money invested (although the value may still fluctuate in the short term). A cautious investor would usually invest in fixed interest funds.

Risk Profile 3 (Balanced)
The Balanced investor wants the potential for high growth over the medium to long term, but accepts that the value of the initial investment could fall, especially in the short term. A balanced investor would usually invest in unit-linked contracts and pooled investments where the value can fluctuate. These funds invest in a mixture of assets that can include UK and overseas shares, commercial property and cash.

Risk Profile 4 (Adventurous)
The Adventurous investor is prepared to accept a high level of investment risk in return for potentially higher growth, and is also prepared to accept a potentially significant loss because the value of investments can go down as well as up. An adventurous investor will usually invest in single rather than pooled investments (direct shares) and overseas funds that are also affected by exchange rate movements. An example of this is a fund that specialises entirely in company shares in one geographical area.

Fund factsheets, covering all the NPI funds on offer, display the NPI risk category to help you build your portfolio.