The Wealthsimple Conservative portfolio (level 1, 2 and 3) is our low risk portfolio. In other words, we built this portfolio with the goal of limiting short term fluctuations while still trying to generate returns that can modestly outpace the rate of inflation. The Conservative portfolio would have declined by only about 10% in the 2008 downturn.
Our conservative portfolio has 30-40% exposure to equities and 60-70% exposure to fixed income or bonds (depending on whether you're in risk level 1, 2 or 3).
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's fairly short-term (3-5 years) and are only comfortable with small fluctuations in your account.
- If you're retired and are only comfortable with small fluctuations in your account.
- If fluctuations in your account make you very nervous but you're okay with a low level of fluctuations to try to grow the funds by more than what a savings account can generate.
If you feel like one of your accounts should be in the Conservative portfolio but isn't at the moment, you can submit a request to change it by clicking on the account you want to change and using the settings on the left-hand side.