For Retiready Solutions 2 to 5 what does 'too risky' mean?
Updated 13 March 2017
For the Retiready Solutions 2 to 5 'too risky' means too much volatility. In simple terms volatility is a measure of how much an investment goes up and down. It helps investors appreciate the speed and extent of changes in fund prices so they can compare one to another.
Each Retiready Solution 2 to 5 aims to ensure that it avoids getting 'too risky' for investors in each risk level in two ways:
- by investing in an appropriate mix of investments to match each risk level and
- by systematically managing risk as an added safeguard. This means it will de-risk (move into safer investments) when volatility goes above a certain level, which is different for each solution