Funds may fall as well as rise in value; in some cases there may be marked increases and decreases in fund values over time. Some funds are more volatile than others and the general expectation is that, in the long run, more risky funds have the potential to achieve higher returns than less volatile funds; they do however have an inherent risk of significant loss of value and this may not be made up in the future. Whilst funds with lower volatility are less likely to exhibit these characteristics as frequently as more volatile funds, a risk for investment loss remains.

Tracker bonds and other similar products are designed to return a certain minimum amount (up to 100% of the capital invested), regardless of the performance of investment markets. These products offer to return more than the investment amount by a link to an investment market(s), currencies, commodities or similar 'underlying' category. The risk to capital is based on the ability of the counterparty to meet its financial obligations when the investment matures. The upside return will depend on the terms of the particular tracker bond.

Whilst what MMPI refers to as 'zero risk' investors, i.e. those who will not invest in any financial institution or instrument, will not face the possibility of investment losses, they will have, in common with all owners of capital, the risk of loss to the 'real value' of that capital as inflation erodes it.

MMPI classifies investment risk into five broad categories above zero risk. Investment losses referred to in the descriptions below do not include the inherent risk of counterparty default. All investment recommendations made by MMPI are for products issued by institutions (or subsidiaries of institutions) or governments which are rated as 'investment grade' or above at the time of the recommendation. In many cases Financial Groups will not obtain a credit rating for its subsidiaries; in these cases we may apply as a proxy the rating applicable to the Parent to the Subsidiary.

Investment Risk Categories

1.Risk Averse
You are extremely careful with your money and do not wish to accept any degree of volatility. You are only comfortable placing your money on deposit with Government backed institutions or institutions with an investment grade credit rating.

2. Conservative
You are cautious by nature but you are willing to accept risk on a small portion of your money. You will accept some volatility with your investment. You are not comfortable with complex ideas and you prefer products backed by institutions with an investment grade credit rating.

3. Moderate
You are prepared to take measured risks with your money. You accept that in the long-term pursuit of gains, fund performance can be volatile and you may suffer losses. You are prepared to accept more complex products but ones backed by institutions with an investment grade credit rating.

4. High
You are a risk-taker but not with all of your money. You accept that in the long-term pursuit of gains, fund performance can be very volatile and you may suffer significant losses. You are open to new initiatives and you are willing to invest in a variety of different products.

5. Speculative
You are an experienced risk-taker and you understand investment markets. You accept that in the long-term pursuit of gains, fund performance can be highly volatile and you may suffer the loss of all of your money due to investment under performance. You are adventurous and you are eager to seek out innovative ways to make your money work harder.