Risk Definitions

Participant Resources

CONSERVATIVE

Stability of principal with little or no price volatility

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A conservative portfolio is very low in risk and typically has very low returns. This investor wants to minimize risk and is comfortable with lower returns in order to maintain stability.


MODERATELY CONSERVATIVE

Safety of principal with minimal price volatility

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A moderately conservative portfolio allows a small degree of risk in order to see some returns. This investor is willing to accept lower returns in order to receive minimal losses.


MODERATE

Moderate growth with some probability of price volatility or loss of principal to achieve potentially higher returns

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A moderate portfolio may have periods of moderate risk, but can also achieve potentially higher returns. This investor is willing to accept modest risks to seek higher long-term returns and typically values reducing risks and enhancing returns equally.


MODERATE AGGRESSIVE

Higher than average growth potential with increased probability of price volatility or loss of principal to achieve potentially higher returns

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A moderately aggressive portfolio has higher risk and can produce larger losses but can also produce higher long-term returns. This investor accepts the possibility of large losses in order to potentially receive higher-long term returns.


AGGRESSIVE

High growth potential with high probability of price volatility or loss of principal to achieve potentially higher returns

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An aggressive portfolio is high risk and can produce high returns, but also has equal potential for bigger losses. This investor wants to maximize long-term returns, and is willing to risk extreme ups and downs in account value.

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