How to decide which investment fund is most suitable for you

Any portfolio manager has the option of investing in shares here and overseas, as well as in property, interest-bearing investments, and cash or money market investments. Each of these asset classes carries a lesser or bigger degree of risk, but at the same time higher or lower potential yields.

When choosing a particular fund, you should at all times feel comfortable with the degree of risk locked into that investment. This risk is determined by:

• the types of investment in which a fund invests,
• how the portfolio is composed from the different types of investments,
• the strategy of the investment manager, and
• if there are any guarantees.

To help you choose an investment fund, Sanlam will at all times disclose in which assets any particular fund is invested in. For your convenience, we also classify each fund according to its potential yield-to-risk ratio, so that you may choose funds to suit your investment needs and risk profile:

Conservative

Your primary investment goal is capital protection. You require stable growth and/or a high level of income, and access to your investment within 3 years.

Cautious

Your primary investment goal is capital protection.  You require fairly stable growth and/or a moderate level of income.  Your investment term is 3 years or more.

Moderate

Your primary investment goal is capital growth.  You can tolerate some fluctuations in the value of your investment in anticipation of a higher return. You don't require an income and you are prepared to invest for 5 years or more.

Moderately aggressive

Your primary investment goal is capital growth.  You can tolerate a fair level of fluctuations in the value of your investment in anticipation of possible higher returns. You don't require an income and you are prepared to invest for 5 to 10 years.

Aggressive

Your primary investment goal is long-term capital growth.  You can tolerate substantial fluctuations in the value of your investment in the short-term in anticipation of the highest possible return over a period of 10 years or more.