Risk Mapping multi-asset funds

Defaqto Risk Mappings are numbered from 1 to 10, where 1 is the mapping with the lowest risk, and 10 the mapping with the highest risk.



1 – Risk averse
2 – Lowest risk
3 – Very low risk
4 – Low risk
5 – Low to medium risk
6 – Medium risk
7 – Medium to high risk
8 – High risk
9 – Very high risk
10 – Highest risk  

The mappings that have been created do not include one for clients that would require a portfolio of 100% cash. Also, the highest mapping does have an upper risk bound, and may not be suitable for clients wishing to invest in a very risky unbound solution.

Uniquely, the mappings are overlapping, partly reflecting the fact that the process of capturing a clients’ mandate also involves discussion and judgement; it is not based on the fund's volatility numbers alone.

We have set the following volatility ranges for each band: