Conservative, Balanced, or Bold? How to Choose Your Investment Risk Profile
Your risk profile determines how your money is split between stocks and bonds. Here's how to pick the right one for your situation.
When you use Ona Planner, one of the key choices you make is your risk profile. It sounds technical, but it comes down to a simple question: how would you feel if your investment dropped by 20% in a bad year?
What your risk profile actually controls
Your risk profile determines how your money is split between two types of investments:
- Stocks (equities) — higher potential returns, but more volatile. Some years up 25%, some years down 20%.
- Bonds — steadier, lower returns. Think of them as a stabiliser in your portfolio.
The four profiles
Careful (20% stocks, 80% bonds)
Best for: short timelines (1–3 years), or people who can't sleep if their balance drops. Lower expected return, but much smoother ride.
Balanced (40% stocks, 60% bonds)
Best for: medium timelines (3–7 years), or moderate risk tolerance. A good middle ground for most goals.
Growth (70% stocks, 30% bonds)
Best for: longer timelines (7–15 years). Higher expected returns, but expect some bumpy years.
Bold (90% stocks, 10% bonds)
Best for: long timelines (15+ years), and people who are comfortable with significant short-term swings in exchange for higher long-term growth.
The golden rule
The longer your timeline, the more risk you can afford to take — because you have time to recover from bad years. A 25-year-old saving for retirement can afford to be Bold. Someone saving for a house deposit in 2 years should probably be Careful.
Try different profiles in Ona Planner to see how your expected return and required monthly savings change.
Try it yourself
Use Ona Planner to calculate exactly what you need to save — adjusted for inflation and your country.
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