It's important to remember that whenever you invest, your money will be exposed to some degree of risk.

Investing for the long-term can provide the potential for higher returns compared to savings accounts, however it comes with investment risks.

There’s also a basic investment principle of risk and return: higher risk has the potential to bring higher returns while lower risk has the potential to bring lower returns. So, the ‘riskier’ the investment fund you choose, the more likely it is for you to either make or lose money. These tend to be invested in more volatile assets such as shares of companies and sometimes even more specialised assets, markets or strategies including emerging markets. This means that the investment value can rise more rapidly, however could also fall faster.

When considering the level of risk you are willing and able to take, investment funds across the industry typically use what is referred to as Synthetic Risk and Reward Indicator (SRRI). This has become a standard way to help customers compare the level of risk associated with each fund. The SRRI indicates the volatility of a fund’s return over the last five years. All fund management companies calculate and display this measure in the same way, using a scale of 1 to 7. This information can be found on all Key Investor Information Documents, which you should always read before investing. 

In addition, Santander ISA Managers Limited provide the below descriptions (Lower to Higher) to help describe the risk associated with each Santander Asset Management UK Limited's fund.

There are various different risks associated with investing. More information and other aspects of understanding risk can be found in our Guide to investing.

Please select a risk level :

Lower risk 

These funds have a lower risk rating because they predominantly invest in fixed term loans to governments or companies although they may also include up to 30% of their value in shares of UK and International companies. They may also have some cash investment.
 
To invest in lower risk funds:
  • You should be willing to accept some investment risk and understand that this is required to generate long-term returns.
  • You should be prepared to consider investments that could show loss in value over short periods.
  • You should understand that longer term returns could still be below your original investment in some scenarios.

Lower Medium risk 

These funds have a lower to medium risk rating because they predominantly invest in assets such as fixed term loans to governments or companies, although they may also include up to 50% of their value in shares of UK and International companies. They may also have some cash investment.
 
To invest in lower medium risk funds:
  • You should be willing to accept some investment risk and understand that this is required to generate long-term returns.
  • You should be prepared to consider investments that could show loss in value over short periods.
  • You should understand that longer term returns could still be below your original investment in some scenarios.

Medium risk 

These funds have a medium risk rating because they typically invest up to 70% of their value in shares of UK and International companies. 
 
This means that these funds have the potential to deliver higher returns than lower risk rated funds over longer periods of time but they also have the potential for greater losses. These funds may also invest in fixed term loans to governments or companies and may also have some cash investment.
 
To invest in medium risk funds:
  • You should be willing to accept substantial investment risk and understand that this is required to generate long-term returns.
  • You should be prepared to consider investments that could show significant loss in value over short periods.
  • You should understand that longer term returns could still be substantially below your original investment in some scenarios.

Medium Higher risk 

These funds have a medium to higher risk rating because they typically invest up to 70% of their value in shares of UK and International companies. 
 
This means that these funds have the potential to deliver higher returns than lower risk rated funds over longer periods of time but they also have the potential for greater losses. These funds may also invest in fixed term loans to governments or companies and may also have some cash investment. Funds with this risk rating may make material changes in their mix of assets through the course of time.
 
To invest in medium higher risk funds:
  • You should be willing to accept substantial investment risk and understand that this is required to generate long-term returns.
  • You should be prepared to consider investments that could show very significant loss in value over short periods.
  • You should understand that longer term returns could still be substantially below your original investment in some scenarios.
 

Higher risk

These funds have a higher risk rating because they typically invest up to 100% of their value in shares of UK and International companies and the majority of these funds will invest in shares in highly developed markets, however they may invest an element in more specialised assets, markets or strategies including emerging markets. 
 
This means that these funds have the potential to deliver higher returns than lower risk rated funds over longer periods of time but they also have the potential for greater losses. These funds may also invest in fixed term loans to governments or companies and may also have some cash investment. Funds with this risk rating are likely to make material changes in their mix of assets through the course of time.
 
To invest in higher risk funds:
  • You should be willing to accept substantial investment risk and understand that this is required to generate long-term returns.
  • You should be prepared to consider investments that could show very significant loss in value over short periods.
  • You should understand that longer term returns could still be substantially below your original investment in some scenarios.
 
What you need to know

Santander Asset Management UK Gold Standard Award

Santander Asset Management UK has been awarded the 2016 Gold Standard Award for Fund Management (Institutional). The award evaluates a company’s ability to conduct business by assessing ‘Five Pillars’ – capability, service, financial strength, fair value and trust. This takes into account structures and processes, fees, governance and social responsibility.

The Gold Standard Awards have been supporting higher standards in financial services in the UK for the past 14 years. Santander Asset Management UK has previously won the Gold Standard award in 2009-2014.

Important Information

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the full amount you invest. When you invest you should be prepared to have your money invested for the medium to long term, typically at least 5 years.
 
With traditional savings your capital will grow when interest is added, however over time the real value will be affected by inflation. With investments, your capital isn’t guaranteed to grow, however they have more potential to balance the effects of inflation.
 
The tax treatment of your savings and investments, including the favourable tax treatment of ISAs, may be subject to change in the future and depends on your individual circumstances.