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Why is Plum Interest referred to as ‘low-risk’ level?
Why is Plum Interest referred to as ‘low-risk’ level?
Dimitris avatar
Written by Dimitris
Updated over a week ago

On the scale of investment risk, this fund can be considered amongst the lowest available. That’s because it invests in high quality assets, like government bonds, and only loans money on a short-term basis to reputable companies and governments.

There is a risk that the forecast of projected yield might not be fulfilled over a longer period e.g. if the central bank lowers its base rate over time. But this fund is designed to transact at a constant price, so you shouldn’t get back less than the initial principal you invested, in the short term.

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