With a conservative portfolio (lower-risk), you can learn more about investing without taking huge risks with your money. For a more conservative portfolio, you’ll want a combination of 20-40% risky investments (like stocks) and 60-80% of safer investments (like bonds).
A moderate portfolio (medium-risk), allows you to experiment with different types of investments while also putting some of your money in safer funds. For a moderate-risk portfolio , you’ll want a combination of 40-60% risky investments (like stocks) and 40-60% of safer investments (like bonds).
A growth portfolio (higher-risk) allows you to think about the future while trying to get the highest return on your investments. For a growth portfolio, you’ll want a combination of 80-100% risky investments (like stocks) and 0-20% of safer investments (like bonds).
If you have an incredible high risk tolerance, and want to try to get the highest possible returns over a long period of time, you would aim for 90%-100% of your portfolio to be in risky investments like stocks.
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