This information is provided for information only and must not be considered as investment advice. You should seek professional investment advice before making any investment decision.
Case Studies
The Risk Rated funds can be blended to create a portfolio that is tailored to a level of risk.
Risk is critical to your portfolio and how it will achieve the objectives. As risk is individual, it is strongly recommended that a professional financial adviser help you assess your risk profile.
Your risk profile will be created from two elements: -
1) Your ability to take risk (or capacity for loss). This is affected by the timeframe for your investment, your wealth, earnings, and need for income and withdrawals. This will change throughout your life, according to personal circumstances and is the focus of the case studies below, which make general assumptions based on stages of life.
2) Your willingness to take risk (or risk appetite). Willingness is subjective and based on your personal disposition. A financial adviser or risk profiling tool can help to assess your willingness to take risk, which is not considered in the case studies. Usually, the lower of your willingness and ability will be used to create your risk profile.
It is important that you understand that this information is general and is not meant as financial advice. The information is designed to help illustrate different investment portfolios according to different levels of risk and may encourage discussion with your adviser. The value of investments and the income derived from them can fall as well as rise and investors may get back less than they invested.