While the Raiz Philosophy is to invest small amounts regularly to manage the uncertainty associated with markets, it cannot eliminate it. All investments carry risk, and some of them are not market risk. Different strategies may carry different levels of risk, and assets with the highest long-term returns may have the highest level of short-term risks.
Below is a list of significant risks to consider before using Raiz. For more info, check out our Raiz PDS.
The value of your Raiz Investment Account, can go up or down. Returns are not guaranteed, and you may lose money. The rate of return varies, so future returns may differ from past returns. Risk impacts vary for individual investors depending on age, investment time frame, and other investments held.
Changes in financial markets, the economy, political changes, technological developments, and changes in market sentiment continually affect the value of investments and the level of income they generate. For instance, if you request a full cash withdrawal or close your Raiz Investment Account the amount you receive may be different (including less) from the last value displayed in your App due to market movements.
INTEREST RATE RISK
Changes in interest rates can directly and indirectly affect investment value or returns. For example, an increase in official interest rates can result in a increase in the interest you receive on your cash but could also cause a fall in the value of bonds and other fixed interest securities.
PORTFOLIO PERFORMANCE RISK
The performance of your Raiz Investment Account may vary from the performance of another Raiz Investment Account which invests in the same Selected Portfolio. This is because contributions will be invested in the Selected Portfolio over time and for differing amounts, and the rebalancing algorithm may lead to different weightings between Portfolios, differences in fees charged and in buy/sell spreads incurred when selling ETF to pay fees.
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The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.