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19th March 2020
The hidden risk of with profits funds
The announcement this week of a -13% mid-term unit price cut to a with profits fund is a useful reminder if you smooth volatility, it can come back all in one go.
With profits funds can smooth away volatility for a while, but they can’t magic away downside risk.
For a recap on the hidden “reset risk” in with profits funds, take a look at our analysis.