The word “risk” often gets a bad reputation. To some people risk is seen as a bad word because they associate it only to the negative connotations of down markets or loss. In business it is necessary to understand the risks so you can try to mitigate them.
The same is for investing as there is always uncertainty for any investment decision. There are always risks associated with global equity, bond and financial markets. So what can you do to mitigate risk?
The Custom Portfolio allows you to be 100% invested in the AAA ETF
The Betashares Australian High Interest Cash ETF – AAA ETF aims to provide exposure to Australian cash deposits, with attractive monthly income distributions that exceed the 30day Bank Bill Swap Rate (BBSW) (after fees and expenses).
Those in Custom seeking to de-risk from other ETFs can allocate 100% of their holdings to AAA, which can allow some breathing room from equity markets, while being ready to reallocate back into higher risk ETFs at a time that suits them.
Custom portfolio fees are higher than the other Raiz Portfolios. To see the fees, click here.
Utilise the Raiz philosophy
The Raiz Philosophy is to invest small amounts regularly, even in falling markets, as this can help you ride out the downturns in the market and is one of the keys to having a healthier balance over the long run. This is the well-known principle of Dollar Cost Averaging.
Raiz has a wide range of portfolios to suit different risk appetites
Raiz has portfolios ranging from Conservative to Aggressive, which gives an indication of the risk profile of the ETFs held within the portfolio, including 5% Bitcoin for the Sapphire portfolio, and up to 5% Bitcoin in the Custom Portfolio. Check which portfolio you are investing in and assess which one suits your personal circumstances and sentiment. Please read our blog post “Which Raiz portfolio could be right for me”.
Risk and reward may go hand in hand
One thing you learn in the long term is that crises are never as bad as they are predicted to be at the time – but also that good times are never as good as they are predicted to be. Raiz’s automated tools like recurring investments are powerful because they can take away the emotion that usually comes with deciding to make an investment.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance 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.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.
Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
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