Fund Sectors

What Fund Sectors / Geographical Areas are considered risky and what are considered cautious?
Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


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  • dunstonhdunstonh Forumite
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    You cannot really say geographical areas because you can pick high risk and low risk in that region. However, you can get a rough idea depending on the economic state of the country or region.

    Cash, UK fixed interest, UK other bonds, interenational fixed interest, gilts, property (bricks and mortar funds only), UK equity and bond are the main cautious sectors. However, the sector itself is only a guide as its possible to pick up higher risk and lower risk funds within those sectors. This is why performance tables by sector are not reliable as the top fund could be a higher risk fund having a good run in a period of growth whereas a fund ranked 30th could be the best bet because it has lower risk and is more consistent and less volatile. A fund manager aiming and achieving second quartile consistency may be better than a fund manager aiming for top quartile performance.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks :)

    What is considered UK equity?

    By property funds I assume you mean funds that invest in property, and not physically buying the property?
    Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    UK equity are shares listed in the UK. UK equity is then often split into sub-sectors such as UK equity income, UK all companies, UK smaller companies etc.

    Property will be property funds that invest into commercial property (not residential). The cautious funds are the bricks and mortar funds that own the properties. The riskier funds are those that invest in property company shares/REITs. i.e. a low risk property fund is clerical medical property fund but a high risk one is Aberdeen Property Share.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • munkmunk Forumite
    993 Posts
    The sector focus section on the trustnet site can give you some indication of how each sector is performing and what kind of volatility it's facing.
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