Understand the characteristics of asset classes
Three types of asset classes are commonly used for investments: equities, bonds and cash.
* Investment risk comes from the fluctuation of returns of an investment instrument. Generally speaking, the higher the risk, the higher the potential return.
Basic investment information
Learn about your risk appetite
The key to discovering your investment strategy is asking yourself what kind of investor you are:
If you have recently joined your company, you will have received an Enrollment Kit from your employer. Read the scheme details before making your fund choice and investment decisions.
Manage investment risk
Fluctuating political and economic conditions, coupled with changing interest rates and inflation often bring uncertainties thus pose risks to your investments. Diversification and dollar-cost-averaging are two investment strategies to help you reduce those risks.
Investing in a single asset class concentrates your investment risk, you can manage this by spreading your investment across equities, bonds and cash. Invesco's pension schemes offer funds with different mixes of the major asset classes, catering to our members' needs.
Trying to time the market is risky if not impossible. Dollar-cost-averaging is a strategy of investing the same amount regularly in the same investment. This disciplined strategy helps ensure that you invest when prices are low so that you reap the benefits when the market picks up. To achieve this, however, you must use this strategy continuously over a long period of time, which means that you maintain regular monthly pension contributions into your chosen allocations.