For Retiready Solutions ISA 2 to 5, 'too risky' means too much volatility.

Volatility is a measure of how much an investment goes up and down and it helps investors understand the speed and extent of changes in fund prices so they can compare one to another.

Each Retiready Solution ISA from 2 to 5 aims to ensure that it avoids getting 'too risky' for investors in each risk level in two ways:

• by investing in an appropriate mix of investments to match each risk level and
• by systematically managing risk as an added safeguard. This means it will de-risk (move into safer investments) when volatility goes above a certain level, which is different for each solution

Please remember that the value of an investment can fall as well as rise and isn't guaranteed. You may get back less than you invest.

This risk management process doesn't apply to the Retiready Stability fund. More information about how the Retiready Stability fund manages risk can be found here.

This risk management process also doesn't apply to the Retiready Solutions Pension 2 to 5 funds. The underlying funds that each Retiready Pension 2-5 fund invests in changed as at March 4 2024. This means that they now invest differently to the Retiready Solution ISA funds. Find out more in our FAQ.