The higher the number, the more risk the portfolio takes. Higher-risk portfolios generally invest more in shares (also called equities). This gives them more potential to grow over the long term but also means bigger ups and downs and the possibility of larger losses.
Here are three examples. The shares and bonds are held through ETFs:
Growth 1
Mostly bonds, with around 8% in shares, 90% in bonds and 2% in cash. It takes the least risk in our range, but can still lose money.
Growth 2
Roughly half shares and half bonds, with around 48% in shares, 50% in bonds and 2% in cash. It sits in the middle of our risk range.
Growth 10
Almost all shares, with around 96% in shares, 2% in bonds and 2% in cash. It takes the most risk in our range, so you should expect bigger ups and downs.
The mix can change over time. A higher number does not guarantee higher returns and a lower number does not mean your money is protected from/during market fluctuations.