Balancing risk and return in BUX Prime Investment Plans

Stocks & ETFs

BUX Prime Investment Plans are model portfolios with active ETFs, investing in stocks and bonds from around the globe. Different assets perform well at different times, so investing in a mix of asset classes, sectors and regions spreads out your risk for a higher chance of a smoother ride.

Find the Right Plan for Your Goals

By default, the four BUX Prime Investment Plans have different allocations to stock and bond ETFs to help you achieve your goals. 

• The Adventurous plan takes more risk to aim for higher growth. It does that by investing more in equity ETFs, with a small allocation to bond ETFs. That means it has the potential to do well when stock markets are rising, but might struggle more in market downturns. 
• The Moderate plan balances equity and bond ETFs, aiming to help your money grow more steadily, with a lower risk of big swings in value. 
• The Conservative plan prioritises peace of mind with a bigger tilt to bond ETFs. Compared to more stock-focussed model portfolios, it may capture less of the upside when markets are rising, but aims to hold up better when markets fall. 
• The Income plan aims to give you passive income with some growth potential. It achieves this by combining income-paying developed market equity ETFs with bond ETFs to help you achieve consistent income in different market environments.

Stocks

Stocks, or equities, are the engine of growth in the plans. They tend to perform well in periods of economic growth, controlled inflation and low interest rates, and when investor confidence is high. They can struggle in economic downturns and in times of high inflation, uncertainty or crisis.

Developed market stocks

Shares listed on the world’s largest stock markets give you a stake in the growth of companies in the US, Europe, Japan and other parts of developed Asia. Some developed market stocks also provide a regular income in the form of dividends.

Emerging market stocks

Shares in companies in faster-growing developing economies such as China and India can provide more growth potential than developed market stocks, but they also come with stronger and more frequent price fluctuations.

Bonds

Bonds, or fixed income, are a way of lending money to governments and companies. They provide a regular income and some growth potential. Bonds can do well in periods when stocks are doing badly, so they can help to reduce losses in a portfolio. Difficult conditions for bonds include times of higher inflation or rising interest rates.

Investment grade bonds

High-quality bonds issued by governments and companies can offer a stable, predictable income and provide a cushion for a portfolio when stock markets are falling.

High yield bonds

These bonds are issued by companies with lower credit ratings. To compensate for the higher risk that the issuers won’t repay their debt, they provide a higher income and higher potential returns.

Emerging markets sovereign bonds

Bonds issued by emerging market governments are considered higher risk but, like high yield bonds, can provide a higher income and higher potential returns.

Investing involves risks. Prime Investment Plans, created by J.P. Morgen Asset Management, solely offer general initial allocation of financial instruments that are completely modular. BUX offers execution-only services only and does not provide investment advice.