Can I lose the money I invest?
Yes. Your capital is at risk whenever you invest. The value of investments and any income from them can fall as well as rise, and you may get back less than you put in. Unlike a savings account, an investment has no promised value, and losses can happen quickly or last for years.
Investments are not bank deposits. Their value depends on the prices of the shares, bonds and other assets they hold, and those prices change every day.
What are the main risks?
The four risks that affect almost every investor are market risk, liquidity risk, currency risk and inflation risk. Prices can fall, you may not be able to sell quickly at a fair price, exchange rates can cut the value of overseas holdings, and inflation can reduce what your money buys.
- Market risk: share and bond prices rise and fall with the economy, interest rates, company results and investor sentiment. Falls of 20% or more have happened many times and can last for years.
- Liquidity risk: some assets can't always be sold quickly, or only at a lower price. In stressed markets, funds may delay or suspend withdrawals.
- Currency risk: if you hold investments priced in another currency, a change in exchange rates can reduce their value in your own currency, even if the asset itself hasn't fallen.
- Inflation risk: if your investments grow more slowly than prices, what your money can buy goes down. Cash held for a long time faces the same risk.
Does spreading my money reduce risk?
Spreading your money across many investments, sectors and countries reduces the damage any single one can do, but it doesn't remove risk. Whole markets can fall together. Putting a large share of your money into one company, sector, country or product makes bigger losses more likely.
Consider how this investment fits with everything else you own, including your pension, property and savings, rather than looking at it on its own.
How do fees affect my returns?
Fees are taken every year whether your investments rise or fall, so they reduce your returns over time. A difference of 1% a year can add up to a large sum over ten or twenty years, because you also lose the growth those fees would have earned. Always compare total yearly costs.
The managed portfolio's fees are set by the provider and listed in its published charges. Dividonic charges you nothing. The fees page shows the effect over ten years in money, not only in percentages.
What if I need the money soon?
If you might need the money within five years, investing it is risky, because markets can be down exactly when you need to sell. Selling after a fall turns a temporary drop into a permanent loss. Keep money for near-term plans and emergencies in cash savings instead.
Trying to time the market, buying after rises and selling after falls, tends to lower returns. Staying invested through ups and downs only works if you can afford to wait.
Are leveraged products or derivatives involved?
Dividonic does not describe or introduce leveraged products, contracts for difference (CFDs), spread bets, options or other derivatives.
Leverage means borrowing to increase the size of an investment. It magnifies losses as well as gains, and you can lose more than you put in.
Does past performance tell me what will happen?
No. Past performance is not a reliable indicator of future results. Charts, historical returns and example projections on this site show what happened or what could happen under stated assumptions. They are not forecasts and not promises.
What do compensation schemes cover?
Investor compensation schemes vary by country, may not cover investment losses, and may not apply to you. Where one exists, it usually pays out only if a firm fails and can't return your money or investments, up to a limit. No scheme protects you against markets going down.
Ask the provider which protections, if any, apply to you and to the managed portfolio, and get the answer in writing. Ask, too, how your money and investments would be held and what would happen to them if the firm failed. Then check what you're told; see how to check the provider.
How is my investment taxed?
Tax treatment depends on your individual circumstances and on where you live, and tax rules can change in the future. Any tax benefits mentioned on this site, such as tax-free wrappers, depend on you meeting the rules. If you're unsure, speak to a tax adviser.
Where can I get independent help?
If you're not sure whether investing is right for you, get independent financial advice before you decide. Advisers usually charge for advice. Many countries also have a free, impartial money guidance service, often backed by the government, that explains saving and investing and how to find a qualified adviser. Check any adviser on the public register of the financial regulator in your country before you pay for advice.
Review history
Version 1.0, in force from 16 October 2026: first published.
This disclosure is reviewed at least once a year and whenever the provider changes the product or its risk warnings.