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. You can read more about which assets are in the non-registered (ie. taxable/personal) or registered (ie. IRA) Balanced portfolios here.
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 change your risk profile by navigating to any of your portfolios from the main landing page (using a desktop computer) and choosing an option from the Portfolio Type dropdown menu on the lefthand side of the screen.