What is the Risk level of my portfolio?
Here is a table mapping each risk level to its corresponding composition:
Risk level | Explanation |
Risk-free rate | Corresponds to letting your money sleep in a bank. |
Very Low Risk | Corresponds to investing 100% in Bonds |
Low Risk | Corresponds to investing more or less 75% in Bonds and 25% in Equities |
Low-to-Mid Risk | Corresponds to investing more or less 62.5% in Bonds and 37.5% in Equities |
Mid Risk | Corresponds to investing more or less 50% in Bonds and 50% in Equities |
Mid-to-High Risk | Corresponds to investing more or less 37.5% in Bonds and 62.5% in Equities |
High risk | Corresponds to investing more or less 25% in Bonds and 75% in Equities |
Very High Risk | Corresponds to investing more or less 12.5% in Bonds and 87.5% in Equities |
Equities Risk | Corresponds to investing 100% in Equities |
It is important to set the risk of the portfolio accurately. This allows you to compare your portfolio to the most appropriate Performance Watcher Index!