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Investing Risk Levels

What Kind of Risk Taker Are You?

After taking a risk assessment, you will receive a risk level corresponding to your general comfort with risk relating to investing. And help with investment decisions, such as what kinds of investments to choose—from lower risk to higher risk assets.

Know Your Investment Risk Level

  • Very Conservative

    Investors who have a very conservative risk tolerance may have a high aversion to the risk of losing money and prioritize preserving their capital. Very conservative investors are likely more comfortable with fixed income and short-term investments, such as bonds, government securities and cash equivalents. A small allocation to equities is possible, but they are likely more willing to accept lower returns in exchange for lower risk.

  • Conservative

    Conservative investors may want to consider balancing risk and return with a higher allocation to stocks but combine it with a significant amount of bonds, government securities and cash equivalents. Steady returns may be a conservative investor's goal, but they also want to maintain a lower level of risk.

  • Moderate

    With a moderate risk tolerance, balancing risk and return is likely most important. An emphasis on stocks, combined with a significant allocation to bonds, government securities and cash equivalents may help achieve the balance between taking risks and growing a portfolio.

  • Aggressive

    With this level of risk, an aggressive investor may be more willing to take on higher risks for potentially higher returns. Their primary focus may want to be on stocks, including non-U.S. companies, to potentially achieve growth with a smaller allocation to bonds and government securities.

  • Very Aggressive

    Those with a very high-risk tolerance may seek maximum growth potential from their portfolios. Very aggressive investors may consider a strong emphasis on stocks, including non-U.S. companies, while maintaining a much smaller portion of bonds and government securities.

What Does Risk Level Mean for a Portfolio?

Your risk level can give you an idea what kinds of investments to choose. You should also consider how much time you have to invest and your goal. Here are samples of very conservative, conservative, moderate, aggressive and very aggressive portfolios to compare. These are for illustrative purposes only and are not personalized for your situation. Ultimately, the investments you choose should be based on your situation.

Very Conservative
Stocks = 25%
Bonds = 73%
Short Term = 2%

Stocks = 45%
Bonds= 53%
Short-Term = 2%

Stocks= 64%
Bonds = 34%
Short-Term= 2%

Bonds =16%
Short-Term = 2%

Very Aggressive
Stocks= 98%
Bonds = 0%
Short-Term = 2%

Have You Taken a Risk Assessment? Choose Your Path

Do It Yourself

Know how much investment risk you want to take by answering a few key questions about your comfort level and timeline. Based on your answers, you’ll receive a risk analysis that can help you choose your investments.

Get Digital Advice

Receive a recommended portfolio by answering a few key questions about your risk comfort level and timeline. The portfolio is managed by our professionals and has their best thinking behind it.

This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

Digital Advice is provided by American Century Investments Private Client Group, Inc., a registered investment advisor, for clients with a minimum $10,000 investment. Digital Advice provides discretionary investment management. American Century does not charge an advisory fee for this discretionary advice. The Journey Portfolios offered through Digital Advice all contain American Century exchange traded funds (ETFs) and mutual funds, which charge investors investment management fees, underlying fund fees, and other administrative and servicing fees. Depending on the different weightings or allocation of such ETFs and mutual funds, your fees for investing in a Journey Portfolio will vary, but generally range from 0.25% to 0.40% per year. American Century Investments' financial consultants do not receive a portion, or a range of the advisory fee paid by clients. Client-oriented trades outside of our recommendations, personal consultations by phone or in-person with our financial consultants, and other activities like wire transfer fees are offered for an additional fee.

All investing involves risk.