Introduction


Determining the risk associated with various investments can be quite difficult and many factors can influence investment risk. This fact sheet shows a number of common investments and their potential risk and return, their ideal time frames and the types of risk that they may be exposed to. It has three main components which are listed below.

The time frame indicator

The time frame indicator shows the ideal length of time to hold the investment (shown in green). Holding the investment outside these time frames (shown in red) could increase the level of risk that may affect the investment as shown on the risk meter.

The return meter

The return meter is designed to indicate where the investment may typically fit with consumers desired or expected returns. Consumers expectations are usually related to their risk profile and needs and objectives.

The risk meter

The risk meter is designed to indicate the risk level that the investment may typically be exposed to, especially if it is invested outside the ideal time frame as shown on the time frame indicator.


Disclaimer: These ratings are of a general nature only and should not be relied upon when placing investments. Individual investment organisations perform and manage differently, which may cause very similar investment products to vary widely in their level of risk, therefore it is important to read and understand the Product Disclosure Satement. Readers should not rely on the information in this guide alone as a basis for making an investment.

For more information on types of Risk refer to our booklet Safety, Risk and Scams, contact the Australian Securities and Investment Commission (ASIC)/Moneysmart www.moneysmart.gov.au or 1300 300 630 or the Australian Competition and Consumer Commission (ACCC)/Scamwatch www.scamwatch.gov.au or 1300 795 995.



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