Risk refers to the probability and magnitude of fluctuations in the value of an investment.
Generally speaking, over the long term, taking more risk equates to higher returns. However, in the short term, taking more risk means greater potential fluctuations, and potential losses, in your portfolio value.
To determine your risk profile, OneVest has developed a proprietary algorithm that takes into consideration your individual profile, financial circumstances, investment knowledge, as well as your general attitude towards taking investment risk.
In conjunction with your financial goal and investment time horizon, this helps us understand how much risk you should be taking with your investment portfolio.
Regarding concerns about your risk or performance, you can always request to speak with a Portfolio Manager to better understand your accounts; but, in general:
- Your portfolio is typically split up, and the portfolio's overall risk and return are managed as a whole.
- The performance of one sub-account does not represent the performance of your entire account.
- As your risk tolerance changes, you can request to change it by speaking with a Portfolio Manager.