Zenith IMMF Balanced US$ Acc: Suitability

The Fund would be suitable for those with a long-term investment horizon of a minimum of 6 years.

Stockmarket investments (equities) are more volatile than the safer 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 give larger positive returns in some years compared to cash or bonds. Generally, when taken over a long period of time, equities provide a better overall rate of return. However, this is not guaranteed. This Fund typically invests 50% in the stock market.

When investing for a short period, stockmarket volatility may be a disadvantage. However, a long-term approach is more likely to deliver better investment results.

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 the period remaining until retirement.  Typically, a younger investor may be more likely to invest in equities.  As the years pass by, the investor may look to consolidate gains by switching out of equities into less volatile investments such as bonds and cash funds.

The Fund would be appropriate for a balanced strategy where investment is allocated into a mixture of equities and bonds. An investment horizon of 6 or more years is recommended.

The Fund would not be appropriate for a cautious strategy, 60% bonds and 40% cash or a safe strategy 100% cash.

In addition, the currency will be a consideration.

The Fund could be attractive to a US Dollar investor because it offers market diversification. A Euro investor should consider the Zenith IMMF European Balanced EUR Acc.