Every fund on DragonFi has an official risk classification: Conservative, Moderate, or Aggressive. It tells you how much the fund's value can move. Here's what each level means.
Conservative
Conservative funds aim for stability. Their value moves only a little from day to day, so the chance of a sharp drop is low. In return, their growth potential is the most modest. Money market funds are the typical example, suited to short horizons or money you want to keep relatively steady.
Moderate
Moderate funds sit in the middle. They accept some ups and downs in exchange for higher return potential than conservative funds. Many bond and balanced funds fall here, suited to medium-term goals.
Aggressive
Aggressive funds carry the biggest swings in value, but also the highest long-term growth potential. Stock funds and global funds are aggressive. They can fall sharply in the short term, so they suit long horizons where there's time to ride out the dips.
Which risk level is right for me?
It depends on two things: how long you plan to stay invested, and how comfortable you are watching your balance move. A longer time horizon generally gives you more room to take on risk, because short-term dips have time to recover. For help matching this to a specific fund, see the "How do I choose the right fund?" article by DragonFi.
Good to know
Higher risk means higher potential return and higher potential loss; the two go together. Each fund's risk level is set officially, not by guesswork, and is shown on the fund's page in the DragonFi app. Whatever the level, a UITF is an investment, so its value can rise and fall and returns are not guaranteed.