The simple answer is yes. At the initial setup stage, we ask you to establish your risk preference. Our sophisticated algorithms will use the information, along with your investment goals and age, to allocate the optimal blend of exchange-traded funds for your portfolio. Learn more about the Investor Questionnaire.
If you feel that your portfolio is taking on too much or too little risk, or if your circumstances have changed, then you can amend your portfolio using the risk slider in your account at any point. You can access this by;
Opening your portfolio-> ‘Projections’ -> 'Apply changes'-> 'Confirm'
Here, you can move your slider between “Low” and “High” to amend your portfolio’s allocations and risk profile. Please note that you can only change the portfolio preset every 2 working days.
If you choose to overlook our recommendations, though, we will issue an alert; this will warn you that you may not have selected the most optimal portfolio. This is because your risk tolerance is used to determine the percentage of your portfolio that is exposed to different asset classes. For instance, a greater percentage of equities in a portfolio will mean more investments that will likely generate higher returns but with greater risk and volatility along the way. Bonds tend to be a safer investment option; delivering lower but more guaranteed returns than shares.
You should also never change the riskiness of your portfolio if you are merely trying to time the market. Studies have shown that even professional investors cannot time market highs and lows. Investors who do try almost always hurt their performance over time.