Sampo Compass Equity Fund: Suitability

The Sampo Compass Equity Fund is suitable for those interested in a wealth increasing strategy where all assets are invested in equities. The Fund offers an ideal investment strategy for those who want to emphasise optimum timing of investments between different markets. You might also want to use this Fund if you have an investment horizon of 10 years or more.

Stock market investments (equities) are more volatile than cash or bonds and so their value is prone to fluctuation. Year on year returns are likely to vary more dramatically, possibly delivering negative returns in some years. Conversely, equities can perform better than cash or bonds in some years and equities provide in general a better overall rate of return over a long period of time. However, this is not guaranteed.
 
Investing for retirement, as with all investment opportunities, is about balancing performance against risk. The tolerance to risk will depend on a whole range of factors; for example, whether or not other savings exist to fall back on. However, the most important consideration is likely to be age and time remaining to retirement. A younger investor may typically be more likely to invest in equities. As the time to retirement approaches, the investor may look to consolidate gains by switching equities into less volatile investments such as bonds and cash funds.