facebookHi, with regards to Syfe, what does downside risk mean in laymen terms? - Seedly

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Anonymous

06 Dec 2019

Robo-Advisors

Hi, with regards to Syfe, what does downside risk mean in laymen terms?

Let's say I invest a lump sum of 1k. What would be the risks that would arise from this and what would be the possible pros?

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You'll never know unless you know what exactly they are investing in..

So really, if you want to take the investing route, you have to do it yourself.

Google warren buffett and read his annual shareholder letters and watch his videos.

As what he says.. no one is more keen in your money than yourself.

Dhruv Arora

06 Dec 2019

Founder & Chief Executive Officer at Syfe

Hi there! At Syfe, we use percentages (e.g. 15% Downside Risk) to label our different portfolios, rather than describe them with vague terms such as “conservative” or “aggressive”. Your Downside Risk represents your risk threshold. (Higher risk is associated with greater probability of higher return). If you have a portfolio in the 15% Downside Risk category, it means that there is a 97.5% chance (39 out 40 years) your portfolio will not lose more than 15% of its value in a given year.

This can impact your overall portfolio. However, in the event where your portfolio threatens to exceed this potential 15% risk of loss - such as during a recession - your portfolio is automatically rebalanced to ensure your risk remains within your selected downside risk level. This is the unique value of Syfe’s methodology.

We do this through our Automated Risk-managed Investments (ARI) methodology. During periods where higher market volatility has been forecasted, ARI will adjust your portfolio allocation and reduce your exposure to higher-risk asset classes.

In other words, ARI reduces the likelihood that your portfolio will lose more than its downside risk to the very minimum, so you can sleep well at night knowing that your portfolio is being continuously monitored and expertly managed by us.​​​

Kelly Trinh

30 Nov 2019

Backoffice technical at financial services firm

Means 15% from your capital sum.

Start out with 1000 on the 15% downside risk means there is 1 i...

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