How do investment funds work?

Investment funds are unitised which means that each individual investor owns a number of units, or shares, in the fund. The price of units is published daily so that unitholders can track the value of their pension savings.

Each fund is managed by a fund manager who is responsible for deciding the type and quantity of the assets held within the fund at any given time. Different funds are made up of different types of assets - or a combination of different assets. Each fund will have its own objective and benchmark (the way in which the performance of the fund is measured).

For more information on different types of assets please go to Asset Classes.

Different funds also have different levels of expected returns (how much they might grow by) and risk (the extent to which the performance of the fund may be volatile – i.e. can go down or up). You should be aware of the risk profile, expected returns and objectives of any funds you may choose to invest in. You should also note that the value of your DC pension is not guaranteed and the value of the underlying investments may go down as well as up.

The pension that you will ultimately receive from your DC pension will depend on a number of factors (including - but not exclusively - investment performance) and is not guaranteed. Please contact your pension administrator or HR department for further information on the factors that may affect the value of your pension.

As a member of a DC pension scheme you may be able to choose from a number of different funds through your scheme or you may be limited to certain funds depending on the type of scheme you belong to. Your scheme may also operate a ‘default’ investment option for members who do not make an individual choice. For further information on the funds available to you or any default investment option that may apply, please contact your pension administrator or HR department. Please note that all information on this website relates solely to Schroders’ DC pension funds.

If you are in any doubt about the suitability of any investment (or other) decision that you may make in relation to your pension you should obtain independent financial advice. A list of advisers may be found at