things to consider before moving funds
Your PIP allows you to buy units in the fund(s) you choose, and you can currently move your money from one fund to another free of charge.
If you’re thinking about moving funds you should carefully consider the level of investment risk that’s right for you. Make sure that the Halifax, or Scottish Widows, funds you choose suit your needs by carefully considering the aims, risks and charges of the funds you’re interested in – we have some customer scenarios to help you.
Risk vs Return
Higher risk investments have the potential for more growth, over the medium to long term, but they are more likely to fluctuate in value. This means they may swing from being higher in value, to lower in value, more often. There is also a higher risk that you could lose some, or all, of what you’ve invested.
Choosing a low risk investment means that your money is less likely to fluctuate in value and you’re at a lower risk of losing some, or all, of the money you’ve invested. However you’ll also have less potential for growth, meaning that your investment could be worth less, in real terms, if inflation is higher than the return you receive.
How much risk you accept when you make an investment will depend on what you want to achieve. There’s always the risk that your money could be worth less than when it was originally invested.