What ARF Funds Should I Invest In?
All investment funds available to ARF investors work from a standardized industry wide risk rating scale, called the ESMA scale. This allows investors to understand the risk profile of their ARF investment.
The ESMA scale works on a 1 to 7 basis. A risk rated 1 fund is the lowest possible risk rating and would typically be a fund which comprised almost entirely of cash. A risk rated 7 fund however is the highest possible risk rating and would be comprised almost entirely of equities (stock & shares).
As a rule, we advise clients to consider taking a conservative investment approach with their ARF funds. ARF Ireland have developed several investment risk profiles at the more cautious end of the investment risk spectrum with all of the insurance / ARF providers we deal with.
We have also developed a risk profiling tool for our clients so that we can establish what risk profile suits them best.
For more information on ARF Investment Fund Options read here