Risk score range: 50-90
A risk score in this range represents investors that are comfortable suffering a loss of up to -14% in pursuit of positive returns of up to +21% over a six-month period. This investor is often referred to as a balanced investor.
Investment strategies that satisfy this group are primarily focused on “balancing” investment in assets that take a higher degree of uncertainty of returns in the pursuit of higher returns against making investments in assets that provide a higher degree of certainty of return. As such an investor in this group is comfortable enduring significant short-term losses of their capital in exchange for long-term gains and have a long-term time horizon.
This is achieved through asset allocation and then by identifying the best performing qualifying assets capable of delivering the return objectives of the investor with a 95% probability of staying within the investors comfort zone. E.g. the average investor for this group is represented by a risk score of 65.
Available on: EasyEquities and TFSA accounts
Basket Fee: 0.5%
Calculate your risk number here
Portfolios with this risk number are targeting an annual return of inflation +7.22% or approximately +13.22%
There are no guarantees this targeted return will be earned.