Risk score range: 35-70
A risk score in this range represents investors that are comfortable suffering a loss of up to -10% in pursuit of positive returns of up to +15% over a six-month period. This investor is often referred to as a moderate investor.
This group want to achieve both capital growth and investment income. Investment strategies that qualify favour assets that offer certainty of return over the uncertainty of return. However, they do strive to strike a good balance of growth and income and in order to achieve this must be comfortable with enduring reasonable short-term losses of their capital in exchange for longer term gains.
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 50.
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 +6% or approximately +12%
There are no guarantees this targeted return will be earned.