The amount a fund’s returns differ from its benchmark is known as tracking error. It’s calculated as the standard deviation of the difference in annual returns. This is low (0% to 0.5%) for index-tracking funds and higher (4%+) for active stock-picking funds. The fund is expected to have relatively low tracking error of 1-3%, meaning returns will differ from the benchmark, but not by a large amount.
VIRGIN MONEY BOND FUND
Puts your money in government and corporate bonds, the majority of which will be in the UK.
At a glance
- Potential for better growth than cash savings but with a higher risk to your investment.
- You can access your money whenever you need to, but you should be ready to invest for at least five years.
- Uses Environmental, Social, and Governance (ESG) considerations to help select which bonds to invest in.
- Interest can be re-invested or withdrawn every six months - useful if you need an income from your savings.
Risk and reward potential
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The risk/reward indicator is a measure of how much a Fund's value has moved up and down in the past, this is a standardised rating that you can also find in the Key Investor Information Documents for each fund. It can help you balance stability with your appetite for investment growth.
For example, risk level 1 signals a low risk of your fund losing money, but also a low potential for growth. The higher the risk rating the more potential there is to grow your investment, but there is also a greater chance of a reduction in value – particularly over the short term.
The risk category shown is not a target or guarantee and may move over time.
For example, risk level 1 signals a low risk of your fund losing money, but also a low potential for growth. The higher the risk rating the more potential there is to grow your investment, but there is also a greater chance of a reduction in value – particularly over the short term.
The risk category shown is not a target or guarantee and may move over time.
Typical Fund Mix
- 50% in UK Government bonds (gilts).
- 50% in corporate bonds.
Remember, the value of your investments can go down as well as up and you may get back less than you invest.
This is a medium to long-term investment so you should be prepared to invest your money for at least five years.
Already got a Virgin Money Unit Trust?
To top up please make sure you've seen the Key Investor Information.
Then give us a call on
03456 10 20 20
We're here from 8am to 9pm Monday to Friday, 9am to 6pm Saturday.
Sorry, we're not open on bank holidays.
Our other funds
You can invest in any of our funds, in any combination, and switch between them whenever you like, for no extra charge.