Each ready-made portfolio has an underlying Vanguard LifeStrategy® mutual fund.
These funds are passively managed and highly diversified, reducing your risk. In fact, each LifeStrategy® mutual fund holds between 6,000 to 20,000 shares and bonds from around the world.
Depending on the ready-made portfolio you choose, it will have a different balance of shares and bonds. Shares generally offer the potential for higher returns over the long term, but they come with greater risk. On the other hand, bonds are more stable but typically provide lower potential returns. Combining both assets in a portfolio is key to balancing risk and reward.
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.