PFA recommends investment profile C
People have very different risk appetites, and it is important that the balance between risk and return suits you and your preferences.
As a starting point, we recommend profile C, which we find have the optimum balance between risk and return for most people - among other things, because we automatically adjust the investments according to your age by gradually reducing high-risk investments from 75 % to 30 % as you approach retirement.
That being said, we recognise that choosing an investment profile is a question of temperament as well as it is dependent on your financial situation. This means that profile A or B may be a better option for you if you prefer low risk - and profile D may be your perfect match if you give top priority to high returns.
Typically, the returns generated by the investment profiles will outperform the returns generated in the average interest rate environment. This is because the profiles allow our investors more investment freedom, which in return allows us to generate the best returns possible.
Get a recommendation straight away
A, B, C or D? Which profile is your perfect match? Find out by answering a few simple questions about your return expectations and your risk appetite. All you need to do is log into My PFA and go through the investment guide.
The relationship between risk and return
Investment returns fluctuate from year to year, and both shares and bonds may yield negative returns.
Risk and return often go hand in hand, and the greater the risk you are willing to take, the greater the potential for a high return. Typically, shares yield higher returns than bonds, but shares also fluctuate more, which means that they entail a greater risk.