The value of your fund can go down as well as up. However, your fund is specially designed to offer some built in resilience:
- Your fund is not just invested in stocks and shares; it is well-diversified across a mix of assets and asset classes, including fixed income and property.
- Also, your policy values usually benefit from our 26-week averaging mechanism, known as ‘smoothing.’ This mechanism is continuing to work as it should. This means that the immediate impact of market volatility is reduced and you are cushioned from short-term market changes.
- For some of our customers you may also have valuable guarantees which help protect against market movements.
It is important to remember that these funds are long term investments and are designed to deliver steady growth over a period of at least five to ten years. In these uncertain times taking the longer-term view into account remains a sensible perspective to take