My Robo-advisor Risk Profile - Medium Risk and Balanced Investment Style
I find the 1-minute Test Find Your Suitable Fund quite interesting and surprisingly accurate. My portfolio is based on balancing between risk and means. I believe in investing by spreading my investment based on different levels of risk:
>10% high risk (options, value stocks, ETFs and others) ,
> 30% medium risk (dividend stocks, low yield mutual funds and short term government bonds)
> 60% low risk (cash plus funds, T-bill and high interest fixed deposit).
At the same time, I think we should invest within your means so I allocate about 12-24 months of emergency fund. This will allow me to hold on to a stock or ETF to weather out volatility risk. I will never YOLO all my cash and still believe in investing for small stable passive income.
The recommendation by the Robo-advisor is acceptable but I still prefer to do my own research, build the portfolio by myself and monitor the performance. The robo-advisor, which recommends mutual funds with a mix of equity and debt assets, is more suitable for retail investors who don't mind a "black box" investment model and have no time to monitor the performance frequently.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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•SE7EN• : So this robo advisor risk profiling, this is just a suggestion only? not a robo advisor just like others that help to manage funds?
ZnWC OP •SE7EN• : This robo-advisor helps to analyse your risk profile and recommend a suitable mutual fund for you. The mutual fund which is managed by the fund manager will "adjust" the portfolio for you - all done automatically. Unlike other robo-advisors, the fee is factored into the return so it appears that you are not paying any fee at all.
Sound good? Before you subscribe, I suggest you check the volatility risk, don't just look at the high % annualised return (not interest rate pa). You may need to hold the mutual fund for 1-3 years to earn any profit. This is not a financial advice so please DYODD.
•SE7EN• ZnWC OP : But is it able to change the fund?
ZnWC OP •SE7EN• : I don't think so.
Agnes chong kk : Good