The ups and downs of investing
- Investment values can fall as well as rise. This means you could lose money. Over the long term, investments usually grow more than cash savings.
- It’s best to let investments grow for at least five years.
- To compare investments, see our comparison tables of available investments. These are based on projections and do not guarantee results.
Understanding investment risks
1. Different funds have different risks
Here are some general points:
- Transfer and withdrawal: Some funds are hard to sell or transfer. You might not access your money quickly.
- Regulation: Not all funds are regulated. Some offer less protection if things go wrong.
- Borrowing (leverage): Some funds borrow money to invest. This can add risk and cost.
- Specialist focus: Funds investing in certain markets or asset types can be risky if those areas perform poorly.
- Valuing assets: Funds investing in assets that are hard to sell, like property or private companies, can be hard to value.
- Assets held: A fund may own a mix of assets, including ones whose value depends on others (called derivatives).
- Management: Fund performance depends on the investment manager. Poor management can cause losses.
2. Suspension of trading
3. Investor protection
We keep your money separate from our own (this is known as “ring‑fencing”). This is designed to protect your money if Cushon were to experience financial difficulties.
Cash
Cash held for you is placed in a client money account at a UK‑authorised bank. If that bank fails, your money may be protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised bank.
Investments
Your investments are held separately from Cushon as client assets for your benefit.
If Cushon (or another regulated firm involved in safeguarding your assets) fails and there is a shortfall, you may be eligible for compensation from the FSCS. For investments, this is typically up to £85,000 per person, per firm.
Important limits to protection
- FSCS protection only applies if a regulated firm fails and cannot return your money or assets
- It does not protect you against normal investment losses (for example, where the value of your investments falls)
- FSCS limits apply per authorised firm, not per account
For full details, please visit the FSCS website.