To understand the
risks involved when investing,
read the following risk
The need for diversification when you
Diversification involves spreading your
money across multiple investments to reduce risk. However, it will not lessen
all types of risk. Diversification is an essential part of investing.
Investors should only invest a proportion of their available investment funds
via RRR and should balance this with safer, more liquid investments.
investing in equity
Investing in shares (also known as
equity) does not involve a regular return on your investment unlike mini-bonds
which offer interest paid regularly. Please bear in mind the following
particular risks for equity investments:
Loss of investment
The majority of start-up businesses fail
or do not scale as planned and therefore investing in these businesses may
involve significant risk. It is likely that you may lose all, or part, of
your investment. You should only invest an amount that you are willing to
lose and should build a diversified portfolio to spread risk and increase the
chance of an overall return on your investment capital. If a business you
invest in fails, neither the company – nor RRR – will pay you back your
Lack of liquidity
is the ease with which you can sell your shares after you have purchased them.
Buying shares in RRR cannot be sold easily and they are unlikely to be listed
on a secondary trading market, such as AIM, Plus or the London Stock Exchange.
Even successful companies rarely list shares on such an exchange. In
addition, if you purchase B Investment Shares, these are non-voting shares and
may not be attractive to potential buyers.
are payments made by a business to its shareholders from the company’s profits.
investment in shares made through RRR may be subject to dilution in the future.
Dilution occurs when a company issues more shares. Dilution affects every
existing shareholder who does not buy any of the new shares being issued. As a
result an existing shareholder's proportionate shareholding of the company is
reduced, or ‘diluted’-this has an effect on a number of things, including
voting, dividends and value.