Risk ratings are a guide, not a full decision
Investment risk ratings are commonly used across pension and investment funds to describe how cautious or adventurous a fund may be. Portzo displays these ratings to help you compare funds more easily; they are not a proprietary Portzo score.
A lower-risk fund may aim for a steadier journey, while a higher-risk fund may have more exposure to growth assets such as shares. The rating is useful, but it should not be read on its own. Two funds with the same risk rating may still behave differently if they hold different assets, invest in different regions or follow different strategies.
Risk also depends on the person. A fund that is suitable for someone 25 years from retirement may feel wrong for someone planning to access money soon. Your own time horizon, goals and comfort with market falls matter.
How to use the rating
- Compare funds within similar categories and, where possible, within the same provider scale.
- Check the asset mix behind the rating.
- Look at volatility and past drawdowns.
- Think about when you may need the money.
Portzo can help you understand risk information, but it does not decide your personal risk level. The information is educational only.