In making your investment selection, you should take into account your personal circumstances, long-term objectives and your attitude to risk.  To help you make a decision, the CRISP Investment guide which can be found online at www.library.aviva.com/aengs126b.pdf allocates each of the available funds a risk category, which indicates its volatility (the strength and frequency of short-term changes in the value of investments).  However, you should be aware that these are broad categories made up of funds that have differing levels of risk within each category.  Please note that unusual movements in investment markets, especially over prolonged periods, may mean the risk categories do not prove to be accurate.  The risk categories are only a guide and unit prices will rise and fall in line with market movements.

Generally, over the long term, there is a trade off between risk and return.  If you can live with more risk, there is a potential for greater returns.

Your contributions are invested in the hope that their value will increase over the long term. However, there are no guarantees, as all investments carry an element of risk.

We tend to think of investment risk as the possibility that the value of our investments may fall, rather than rise.  This is of particular concern shortly before retirement, where a fall in the value of your CRISP account could reduce your pension income significantly.  However, over the longer term, there is also the risk that, by being over cautious, the value of your investments will not grow quickly enough to keep up with inflation and subsequently provide an inadequate retirement income.