PrimeSpace Property Investment

Considering Risk

When considering PrimeSpace as an investment option you should understand your profile, how you feel about risk and the investment term.

All these factors have to be considered against the forecast return on investment.

Property Funds

Investing in property

Risk and return

When deciding to invest in PrimeSpace it is important that your investment goals consider your financial capacity and that your investment profile is aligned with investment options.

Investment risk means the potential volatility, or fluctuation of investment returns over the term of an investment. The return on investment means the amount of money the investment earns, or loses. All investments carry some degree of risk, but some carry more than others. If you seek higher returns then you need to be comfortable with accepting a potential higher level of risk.

Diagram

It is important that you remember that just as the value of your investment may increase, it may also decrease or generate negative returns from time to time.

Risk profiles

Risk profiles categorise the risk appetite of investors and correlate to the risk/return relationship. Profiles include:

  • defensive
  • moderate
  • balanced
  • growth
  • high growth

Asset classes

Risk profiles can be mapped against the five main asset classes that provide investors with investment option. The five classes include:

  • cash
  • fixed interest
  • property
  • alternative investments
  • shares

An investor’s risk appetite may sit along a risk/return spectrum which may be aligned with the general investment characteristics of different asset classes.

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