Your risk profile is a guide to help personalize your investment strategy according to your goals. It’s important to note that your risk profile does not limit your access to investments: you can always invest in whatever you choose.
How is your risk profile determined?
When you open your account, you answer a short questionnaire that considers:
Your investment horizon (short, medium, or long term).
The funds you have available to invest.
Your prior investment experience.
Other factors related to your financial goals.
With this information, a strategy is suggested that balances risk and return according to your profile.
What are the risk profiles?
Conservative
Prioritizes the security of savings over growth. Has low tolerance for volatility and usually opts for low-risk instruments, which generally offer lower returns, such as government bonds, fixed-income funds, or certificates of deposit.
Moderate
Seeks a balance between stability and growth. Willing to accept some fluctuations in investments if it allows for better medium- or long-term returns. Typically chooses a mix of stable stocks and fixed income, such as government bonds.
Aggressive
Has high tolerance for volatility and seeks to maximise long-term growth. Accepts fluctuations, and even temporary losses, if there’s potential for higher future gains. Usually opts for a portfolio with a higher proportion of equities, such as growth stocks and ETFs.
When is your risk profile adjusted?
DolarApp will review your risk profile at least every two years to ensure it remains aligned with your situation and investment goals. If you want to change it sooner or need help, contact us via the support chat in the app or by email at help@dolarapp.com.