Each ready-made portfolio has a different balance of equities and bonds.
Typically, bonds are more stable and experience fewer price fluctuations. Share prices, on the other hand, tend to vary more with market movements, as investor supply and demand fluctuates.
Each of the three portfolios have been chosen to reflect different risk tolerances.
Conservative
Vanguard LifeStrategy 20% Equity (Acc)
A steady portfolio with lower risk. Weighted towards stable assets with a smaller portion in shares, it’s designed to help your money grow gradually and with more consistency over time.
Moderate
Vanguard LifeStrategy 60% Equity (Acc)
A growth-focused portfolio with a bit more risk. A blend of stable assets with greater stock market exposure to grow your money over time.
Adventurous
Vanguard LifeStrategy 100% Equity (Acc)
An equity portfolio focused on long-term growth. Managed with the aim of growing your money over time, though its value may rise and fall along the way.
Capital at risk. The value of your investments can go down as well as up and you may get back less than you invest.
Freetrade does not give investment advice and you are responsible for making your own investment decisions. If you are unsure about what is right for you, you should seek professional advice.