Please see below the descriptions for our Suitable Risk Levels (also known as Risk level on our API documentation).
For 5 level scales, only low, medium low, medium, medium high and high will apply.
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Very low: Your priority is for your overall investments to be secure and not to lose capital. Most standard investment portfolios would not be suitable for investors seeking very low risk, and additional checks and confirmation should be performed before proceeding. You accept that any financial gains will be modest and that your savings do not keep pace with inflation.
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Low: You should limit the risk of capital loss, and the risk to the value of your investments. You accept that this will limit the growth potential of your investments, which in some cases may not match inflation.
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Medium low: You accept there is a risk of losses on your investments for them to have longer-term growth potential, but should ensure that both the risk and the related long-term returns are relatively low.
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Medium: You accept the risk of loss to your investments because you want to achieve a good long-term financial return. You’re comfortable seeing the value of your investments fluctuate if the risk of significant loss to your overall investments is minimised over the long term.
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Medium high: You accept a higher risk of loss to achieve elevated financial returns. You accept that the value of your investments will be volatile over time.
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High: You seek to considerably increase your overall financial returns and accept that this could lead to extensive losses. You understand that your investments may be highly volatile over time but are prepared to take this risk.
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Very high: You can accept potentially extensive losses on your capital. You are prepared to see your investments subject to extreme fluctuations in value. You can accept all these risks because you want to achieve the highest possible returns available in the long term.
Risk bands and metrics for five risk categories
|
Risk |
Lower limit (%) |
Mid-point (%) |
Upper limit (%) |
|
Low |
1.7 |
3.3 |
5.0 |
|
Medium-Low |
5.0 |
6.7 |
8.3 |
|
Medium |
8.3 |
10.0 |
11.7 |
|
Medium-High |
11.7 |
13.3 |
15.0 |
|
High |
15.0 |
16.7 |
18.3 |
|
Risk |
Lower limit (band) |
Mid-point (band) |
Upper limit (band) |
|
Low |
1.0 |
1.0 |
1.5 |
|
Medium-Low |
1.5 |
2.0 |
2.5 |
|
Medium |
2.5 |
3.0 |
3.5 |
|
Medium-High |
3.5 |
4.0 |
4.5 |
|
High |
4.5 |
5.0 |
5.0 |
Risk bands and metrics for seven risk categories
|
Risk |
Lower limit (%) |
Mid-point (%) |
Upper limit (%) |
|
Very Low |
1.25 |
2.50 |
3.75 |
|
Low |
3.75 |
5.00 |
6.25 |
|
Medium-Low |
6.25 |
7.50 |
8.75 |
|
Medium |
8.75 |
10.00 |
11.25 |
|
Medium-High |
11.25 |
12.50 |
13.75 |
|
High |
13.75 |
15.00 |
16.25 |
|
Very High |
16.25 |
17.50 |
26.5 |
|
Risk |
Lower limit (band) |
Mid-point (band) |
Upper limit (band) |
|
Very Low |
1.0 |
1.0 |
1.5 |
|
Low |
1.5 | 2.0 | 2.5 |
|
Medium-Low |
2.5 | 3.0 | 3.5 |
|
Medium |
3.5 | 4.0 | 4.5 |
|
Medium-High |
4.5 | 5.0 | 5.5 |
|
High |
5.5 | 6.0 | 6.5 |
|
Very High |
6.5 | 7.0 | 7.0 |