Retiready Stability uses a combination of diversified and complex investments (called derivatives) to help minimise large fluctuations up or down in value. The main focus of the fund is to preserve the existing value of the savings you have built up.

Diversification means investing in lots of different investment types (shares, bonds, cash, commercial property) different world regions, different types of companies and different fund managers, in order to reduce the risk of relying on one type alone. 

Derivatives are financial contracts that give investors exposure to the performance of an investment without owning it. Derivatives allow the fund to benefit from both rising and falling markets. In this fund they are used to help reduce investment risk. 

However, there are risks in using derivatives:

• They may restrict the extent to which the fund benefits when markets go up in value. 
• They may also result in falls when markets move in a different direction (up or down) to that expected by the manager.

There’s no guarantee the fund will meet its objectives. The value of this investment can fall as well as rise and investors may get back less than they invested.

Find out more about Retiready Stability