Risks and returns
By understanding the risks involved with investing in an IG Smart Portfolio, you’ll be in a better position to make informed investment decisions.
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Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about investing. We're available 24/7 between 8am Saturday and 10pm Friday.
Contact us 0800 409 6789
Call 0800 195 3100 or send us an email newaccounts.uk@ig.com with any questions about opening an account between 8am and 6pm (UK time) on weekdays.
Contact us 0800 195 3100
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about investing. We're available 24/7 between 8am Saturday and 10pm Friday.
Contact us 0800 409 6789
Remember: the value of investments can go up or down. You could get back less than you invest.
Your investments
When you make an investment, there is always the risk that it could fall in value as well as rise.
Saving cash is generally viewed as a risk-averse investment option – it offers lower potential returns than other investments, but there’s only a small chance of actually losing any money. However, if the interest rate on your savings account is lower than the prevailing rate of inflation, the real value of your savings will be less than your original deposit.
When you invest in products that aren’t cash, your capital is at far greater risk. Equities have historically delivered higher returns than cash long term, but share prices regularly fall as well as rise, and some companies fail completely.
While you’ll make an investment with the expectation of generating positive returns, you must also accept that you could end up with less money than you originally put in.
What are the risks?
As with all investing, your capital is at risk. The value of your IG Smart Portfolio could go down as well as up, and you may get back less than you invest.
IG Smart Portfolios are built with BlackRock’s market-leading iShares ETFs. It’s important to understand that there are many risks associated with ETF investments, including:
Market risk
As an ETF seeks to replicate the performance of an underlying index or asset, its price will fall if its benchmark drops in value.
Currency risk
If an ETF is invested in an asset which is listed in a different currency to that of an IG Smart Portfolio (GBP), your returns will be affected by changes in the foreign exchange rate.
Liquidity risk
It’s possible the value of an ETF may not be realised because there are insufficient buyers in the market. ETF markets are generally highly liquid, but it can’t be guaranteed they always will be.
Tracking error
The structure and cost of an ETF could mean that it’s unable to track its benchmark exactly.
Tax
As with the majority of investments, ETFs usually incur some form of taxation (unless they’re held within an ISA or SIPP) which could affect your overall returns.
Past performance is not a guarantee of future performance
When we project the returns your IG Smart Portfolio will generate, we analyse the past performance of various funds and market indices and use it as a guide. However, past performance is never a guarantee of future performance.
For example, a company which performs well one decade might struggle significantly the next. Sectors, asset classes, countries, and even continents can all experience highs and lows that can alter the performance of your investments.
As such, our projections are only intended as an aid to decision-making.
Investing is not a short-term option
IG Smart Portfolios are designed as a long-term investment strategy and are not recommended as a short-term investment option.
Your portfolio may be susceptible to shorter-term fluctuations in the markets, but should ride out any difficulty over a longer period of time.
IG Smart Portfolios may not be for everyone
We want to help you fully understand the risks involved when investing with us.
If you have any questions please consult our FAQ page. Alternatively, you can call us on 0800 409 6789 or email helpdesk.uk@ig.com and we’ll be happy to assist you.
If you are still unsure if investing is right for you, please seek independent financial advice.
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