The volatility rating of an investment-linked fund is an indicator of how much the fund price might vary relative to other funds. The higher the volatility rating, the less stable the fund price is likely to be. You can use this to help you decide how much risk you're comfortable taking with your investments.
We allocate ratings using the judgement of our experts taking into account data on:
- how the fund price has varied from month to month in the past, relative to other funds available
- how investments in similar asset classes vary from month to month and the investment policy of the fund.
The volatility rating of a with profits fund is based on the rating of an investment-linked fund with a similar mix of assets. The impact on with profits payout levels of any smoothing and of any investment guarantees has not been allowed for in the rating.
Typically, the higher the volatility rating, the greater the potential investment returns over the longer term. However, high volatility funds can suddenly fall and rise in value. The volatility rating is not the only factor you should consider when selecting a fund. If you are unsure of which funds to choose you may wish to seek advice from a financial adviser.
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This site is for United Kingdom residents. Standard Life Assurance Limited, registered in Scotland (SC286833), Provider and Scheme Administrator of the Standard Life Self Invested Personal Pension Scheme, and Standard Life Trustee Company Limited*, registered in Scotland (SC076046), Standard Life Savings Limited, Manager of the Standard Life ISA, registered in Scotland (SC 180203), all Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Calls may be recorded/monitored. All companies authorised and regulated by the Financial Services Authority. (* except for Standard Life Trustee Company Limited) |
