Whilst income is defined by its investment objective for income rather than capital growth, in this section we explain how we define the investment risk for each of the five risk graded portfolios.

It is worth mentioning that Investment theory states that to achieve a higher investment return you should accept a higher level of investment risk.

The theory also suggests that these two variables can be matched to achieve an optimum position so that, once you have been able to define your attitude to investment risk your investments can then be allocated to achieve an optimum result.

Finally, the theory goes on to suggest that higher risk assets such as shares, will outperform most other investments and the risk of holding these assets will diminish over time. It follows that your time frame will be a key determinant when defining your investment objectives.