The key difference between each Core portfolio is their exposure to stocks and bonds, which in turn determines their overall risk level. In a nutshell, Core portfolios with a greater equity allocation (and lower bond allocation) will have higher potential returns, but the addition of increased risk.
Choosing between the four Core portfolios very much depends on your investment goals, time horizon, and risk appetite. Here’s a quick guide to help you understand which portfolio is right for you.
- Core Defensive is a low-risk portfolio that’s ideal for conservative investors, or those approaching a particular financial goal
- Core Balanced is a medium-risk portfolio that’s ideal for moderate investors with a mid-to long-term horizon
- Core Growth is a high-risk portfolio that’s ideal for growth-oriented investors with a longer time horizon
- Core Equity100 is a 100% equity portfolio that’s ideal for investors who are comfortable taking on higher risk for potential higher long-term returns
Learn more about about Core portfolio investment methodology here.