Risk score range: 1-45
A risk score in this range represents investors that are comfortable suffering a loss of up to -4% in pursuit of positive returns of up to +10% over a six-month period. This investor is often referred to as a capital preservation investor.
This group want to preserve their income. Investment strategies that qualify favour assets that offer certainty of return over the uncertainty of return. Therefore this is aimed at investors who would not only like to take on minimal risk but also gain exposure to fixed income and money market products. 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 30.
Available on: EasyEquities and TFSA accounts
Bundle Fee: 0.5%
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Portfolios with this risk number are targeting an annual return of 6% (inflation)
There are no guarantees this targeted return will be earned.