There are 5 risk categories :
Investors on the more cautious end of this scale prefer stable, low-volatility investments. While these offer security, they typically yield lower returns.
More adventurous investors favor aggressive investments, trading security for the potential of higher returns in less time. They are more willing to tolerate market fluctuations than investors with a more cautious outlook.
Get an asset allocation that is aligned with an investor risk attitude.
Asset allocation is the strategy of dividing a portfolio among different asset class categories - like equities (stocks), fixed income (bonds) and cash.
The results include index or active Vanguard mutual funds or ETFs (exchange-traded funds) that align to an investor risk attitude.
A mutual fund is a pool of money from multiple investors that fund managers use to invest in stocks, bonds, and other securities.
An ETF is an investment that's built like a mutual fund—investing in potentially hundreds, sometimes thousands, of individual securities—but trades on an exchange throughout the day like an equity.
