"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Within each asset class and sector there are funds which, are invested in such a way as to take relatively few risks and others which are prepared to sacrifice security for potentially higher rewards.
The adventurous funds will tend to outperform the cautious funds in good times but may be more likely to suffer greater losses in bad times.
How can the investor identify which funds match his or her personal preferences and attitude to risk, and are there any funds which can offer better-than-average potential with lower-than-average risk?