The Wealthsimple Balanced portfolio is our medium risk portfolio. In other words, we built this portfolio with the goal of balancing the growth and the protection of your capital. Over the long-term, we don't anticipate this portfolio to have the highest expected returns as markets trend upwards over a long period of time, but it will also provide a fair amount of cushion (or capital protection) during a market decline. That said, this portfolio can still suffer short-term losses during a broad market decline (e.g. a ~20% losses in 2008).
Our balanced portfolio has 50% exposure to equities and 50% exposure to fixed income or bonds.
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's about 5-10 years away and are comfortable with some fluctuations in your account.
- If you're retired and are comfortable with some fluctuations in your account.
- If you have a longer term goal (10+ years) and are willing to take some risks to ensure your funds grow adequately over time but aren't comfortable with very large fluctuations in your account.
- If you have a longer term goal (10+ years) and are willing to take some risks to ensure your funds grow adequately over time but haven’t had experience with investing or account fluctuations before. This is ideal for first time investors.
If you feel like one of your accounts should be in the Balanced portfolio but isn't at the moment, you can submit a request to change it by logging into your profile on the web. Click your name in the top right-hand corner > Settings > Account > Investment profile. You can then use the link here to book a call with an investment adviser to review your portfolio.