Sampo Compass Liquidity Fund: Suitability

The Sampo Compass Liquidity Fund is suitable for those interested in a relatively cautious strategy since all assets are invested in fixed income. The Fund offers an ideal investment strategy for those who want to emphasise optimum timing of investments within fixed income. You might also want to use this Fund if you have a shorter-term investment horizon or if capital preservation is of importance.

The Fund can alternatively be used as part of a balanced strategy where investments are allocated into a 50/50 mix of equities and fixed income if you have at least six years to retirement. The Fund is also suitable in an even more cautious strategy with 50/50 mix of fixed income and cash.

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.