What does investment risk really mean?

In investing, risk mostly means uncertainty: how much the value of your portfolio could swing up and down before you need the money.

Over a single year, markets can fall sharply. Over ten or twenty years, those falls have historically been recovered. The longer your timeline, the more short-term risk you can usually afford to take.

Your risk level combines how long you're investing for and how you'd feel during a downturn.

• Cautious: steadier, lower expected growth
• Balanced: a mix of growth and stability
• Adventurous: bigger swings, higher growth potential