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.
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.