Returns are not guaranteed. When you invest in the market, there is always some risk that the value of your investments will go down. Here, the term ‘risk’ can be considered as a measure of how much your investment can increase or decrease; the more risk you take on, the higher your potential gains but also the higher your potential losses.

In our ikigai portfolios, a higher proportion of equities to fixed income represents higher risk, and those portfolios tend to reap higher rewards over the long term than the portfolios that have a higher proportion of fixed income. That said, the key term here is “over the long term” - while you can expect a higher return in the long run, in the short term, you will likely weather a storm of ups and downs. Depending on your investor profile and circumstances, these fluctuations can make for quite an emotional experience so we strongly recommend you only take on the level of risk that you are comfortable with.

It should also be said that there are ways of analysing an investment's risk and its past returns. We use our algorithms to do just this with the aim of finding investments that have the best returns at the right risk level for you.

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