Risk is part of investing. But how do you know how much risk you’re taking? That’s what the risk indicator is for. It’s a tool that financial institutions, like UpToMore, use to provide insight into the risk of an investment product.
The risk indicator is a tool that shows how much risk you’re taking with an investment product. The scale ranges from 1 (very defensive) to 7 (very aggressive). The higher the score, the greater the chance of short-term fluctuations.
The risk indicator looks at value fluctuations in the past. The larger these fluctuations, the higher the score. It’s not a guarantee of future returns, but it does provide a realistic picture of the risk.
We invest passively, globally diversified and for the long term. You take investment risk, but diversification helps to limit that risk. Our strategy falls into risk class 5. This suits a long-term horizon and a balanced relationship between risk and expected return.