Each LifePlan comes with a different level of equity exposure, ranging from 20 to 100% equity.
Typically, more equities means more risk, but also the potential for greater returns. Bonds, on the other hand, shoot for stability, for a more slow and steady approach.
LifePlan 20 is considered low-risk investing, with 20% equity and 80% bonds. It’s ideal for someone who may want to invest but may be in or approaching retirement, or only able to invest for a shorter period of time. You know you want to be investing but prefer to minimise your risk.
LifePlan 40 is a balanced option, with 40% equity and 60% bonds, for those comfortable with a bit more risk. This portfolio is ideal for an investor who prefers a lower level of risk and may not be comfortable with the ups and downs of stock market volatility.
LifePlan 60 offers 60% equity and 40% bonds - a solid choice for those seeking higher growth over time. LifePlan 60 may be for a balanced investor who wants long-term investment growth while maintaining some protection through the 40% bond allocation.
LifePlan 80 is designed for those with higher risk tolerance, focusing on long-term growth with 80% equity and 20% bonds. For someone who wants long-term investment growth, while keeping a small amount of protection with the 20% bond allocation.
LifePlan 100 is fully invested in the stock market, with almost 100% equity*. This high-risk, high-reward option is for those aiming for maximum growth. Typically, a higher exposure to equity gives you the opportunity for higher returns over the long term but can be riskier over the short term.
*LifePlan 100 has 2% of bonds in its composition, 1% cash and 97% of equities. The portfolio isn’t 100% equity as we keep a small amount of cash in the portfolio.