Whilst we certainly don’t want to deter our clients from investing, we have an obligation and duty to make all our clients aware of the below points when investing
Past performance is not a guide to future performance, nor a reliable indicator of future results or performance.
Investments in shares of smaller companies are generally considered to carry a higher level of risk.
shares are often less liquid than that of larger companies – shares of smaller companies therefore can be more difficult to buy and sell.
Shares of smaller companies may fluctuate in by greater amounts than shares of larger companies over short time periods.
Therefore, investors should regard such investments as long term, to allow for shorter term variability.
The real value of investments and the income generated from them, may go down as well as up and is not guaranteed. Investors may get less back than their original investment.
If the performance of an investment does not meet or exceed the rate of inflation, the real value of that investment will be eroded.