Company shares (equities) tend to be more volatile than bonds and so, while offering greater potential for capital (and income) growth, they also carry the possibility of loss; risk and reward are not always in a simple direct relationship although that is a good general impression. The value of equities then may fluctuate in response to the activities and results of individual companies together with general market and economic conditions. Bonds are generally considered to be more secure, usually including an obligation to repay a set sum at a future date and to provide a fixed level of income in the meantime. The capital value will still fluctuate though, while both these main asset classes are very sensitive to interest rates; most bonds offer no protection against inflation. IFSLHathaway Fund: Risk and Reward Profile This indicator aims to give you a measure of the price movement of this share class based on past data. It uses historic returns over the last five years. If five years' data is not available, simulated data based on a representative portfolio is used. Past data may not be a reliable indication of the future performance of the Fund. The risk category may change and is not guaranteed. The lowest category does not mean risk free. The value of investments and the income from them may fall as well as rise and you may not get back the amount you originally invested. Please see our Key Investor Information Document on our Fund administrators website for further information. This website does not contain or purport to contain investment counsel and appropriate investment advice should always be sought before taking any actions.