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What does my risk profile mean? How is it determined?
What does my risk profile mean? How is it determined?

Learn more about how DolarApp identifies your risk profile and how this can help you assess your investment strategy.

Updated over a week ago

Understanding Your Risk Profile at DolarApp

At DolarApp, we help you understand your risk profile to determine the best investment strategy for you. There are three main risk profiles:

  1. Conservative

  2. Moderate

  3. Aggressive

Here’s what each profile means and how we determine which one is best for you.


How is Your Risk Profile Determined?

Your risk profile is based on your answers to a questionnaire that helps assess key factors such as:

  • Your financial knowledge and investment experience

  • Your financial situation (income, savings, and goals)

  • Your risk tolerance (how comfortable you are with market fluctuations)

  • The length of time you plan to invest

Based on this information, we calculate your risk tolerance and assign you a profile (Conservative, Moderate, or Aggressive).


What Does Your Risk Profile Mean?

🛡️ Conservative

  • You prioritize capital protection over higher returns.

  • You prefer stable, low-risk investments (e.g., bonds or certificates of deposit).

  • This profile is suited for investors with a shorter investment horizon or lower risk tolerance.

⚖️ Moderate

  • You are comfortable with some market fluctuations and risk.

  • You seek balanced growth and aim for returns higher than inflation.

  • This approach often includes a mix of stocks and fixed-income investments.

  • Ideal for investors with a medium to long-term investment horizon who want growth and stability.

🚀 Aggressive

  • You are willing to take high risks for the potential of higher returns.

  • You focus on growing your capital and are comfortable with market volatility.

  • This profile is suitable for those with a long investment horizon and a high risk tolerance.


Why Does Your Risk Profile Matter?

Your risk profile helps us recommend investments that fit your financial goals and comfort with risk. Whether you want to preserve or grow your wealth, understanding your profile ensures your investments align with your needs.

We review your profile every two years to ensure it matches your evolving financial situation and goals.

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