Risks

Do you want to take a risk for a larger potential reward, or do you want to play it safe with a less risky ISA?

You can select the type of ISA you want depending on your attitude to risk.

A fund investing predominantly in fixed interest securities is likely to be much less volatile and therefore conceivably less risky than, for example, a fund investing in small companies in an emerging market or a fund investing in companies involved in research and development of biotechnology.

It should however be appreciated that whilst the latter have a greater downside potential they may also have a much greater upside potential.

What ever your investment preference, ISAs should be considered a medium to long term investment so that the passage of time has the opportunity to smooth out any short term fluctuations.