Looking to reduce your investment risk?

There is one important, yet simple step you can take. You can spread out your investment.

Don’t put all your eggs in one basket

When people think about investing – it often conjures up visions of high stakes and either winning big or losing everything. That’s sometimes because people think about investing in one company or one particular type of asset. If it does well, it’s great…but if it doesn’t perform well, then you can potentially lose some or all of your money.

The reality is different types of assets are likely to perform well at different times. The problem is knowing when is the “good time” for your type of investment?

That’s why one simple and easy step to reducing investment risk is to invest in something that spreads your money across different types of assets. This is called diversification and it means you don't have all your eggs in one basket.

Helping reduce risk through an investment that spreads your money

One type of investment that spreads your money is called a “multi-asset investment”. And Prudential can offer you a range of multi-asset investments.

Your money is spread across a range of different types of assets. By spreading your money this way, it helps reduce the risk. For example, one year one type of asset may be performing well and another may be underperforming. If your investment is spread across both of these assets, over time the potential returns are more likely to be consistent than a fund which only invests in one type of asset.

Please remember as with any investment the value can go down as well as up and you may not get back the amount you put in.

An adviser can help you find the right investment for you

Everyone is different in terms of the amount of risk they want to, and can take. So we have a range of investments to suit different needs. Speaking to a financial adviser can really help.  It is a financial advisers job to find the best solution for you and recommend the right place for you to invest.  Perhaps more importantly they will only ever recommend something that suits your needs and works for you.

Our fund range includes:

Passive funds

Our passive funds spread out the risk by investing in a number of different assets, whereas typical passive funds only invest in one type of asset. We also have investment strategists making ongoing decisions about where to invest. A lot of other passive funds are just managed by computers rather than people and usually track something, for example a financial index. We combine both these approaches so our passive funds also benefit from some active management.

Active funds

Our Active funds invest in a broader range of assets than our passive funds so you have more potential for growth, as well as benefitting from spreading the risk.

These funds are actively managed, which means a fund manager uses their expertise, experience, and judgement to decide where, when and how much to invest.

This active management means these are more expensive to invest in than our passive funds.

Smoothed funds

Our range of PruFund funds are invested in the Prudential With-Profits Fund. This fund is spread across a wide range of investments, offering potential for higher returns. The aim is to grow your money, while giving you a smoothed investment experience over the medium to long term (which is 5-10 years or more).

Our PruFunds give you some protection from short-term peaks and troughs associated with the stock market. Because of this the PruFund funds are more expensive than the passive and active funds.

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Our investment guides aim to help you understand some of the different ways you can invest your money.

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We invest in ourselves, in our careers and in our futures - to make things better. So why when it comes to investing with our money are we suddenly put off?

Want to find out more about reducing your investment risk?

A financial adviser can tell you more about multi-asset investments and will recommend ways to make your money work harder and find the right investment for you. We offer a restricted advice service.

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