Robo-Advisor safety, risks and returns
Expected returns for Robo-Advisor
An investment portfolio's performance depends on a variety of factors, including:
- Specific assets in the portfolio
- Investment horizon
- Overall market conditions
Past performance isn’t indicative of future results. Investing involves the potential for loss as well as gain.
The backtested compound annual growth return (CAGR) of the past five years is used to create projection graphs showing the hypothetical growth of your portfolio. CAGR is calculated as the total return averaged across the five years, after fees.
Risks associated with Robo-Advisor
Typically, the more risk in a portfolio, the greater potential for returns. However, the portfolio’s value is also likely to fluctuate more significantly when risk is higher.
Revolut will use your answers in the suitability questionnaire (find out more in this FAQ) to determine a portfolio that best matches your knowledge and experience, financial situation, and risk tolerance. The degree of risk will vary based on the results of the suitability questionnaire.
Robo-Advisor invests in multiple exchange traded funds (ETFs), and this diversifies the investment. Returns aren’t guaranteed. However, in some cases, this might limit your losses.
By creating a diversified portfolio of assets, Robo-Advisor spreads risk across different asset classes, geographies, and sectors, which may help mitigate the impact of any individual market event or asset performance. While diversification can help to reduce the overall risk of a portfolio, it doesn’t protect against loss.
Before using Robo-Advisor, it’s important to carefully consider your investment objectives and risk tolerance, and understand the specific limitations and risks associated. Go to this page to learn more about Robo-Advisor and the services it offers. For more information on the risks you should consider before using Robo-Advisor, please see our Risk Description.
What if Revolut Securities Europe UAB goes bankrupt?
If Revolut Securities Europe UAB goes bankrupt and you have invested with Robo-Advisor, up to €22,000 of your funds and securities will be protected by the Lithuanian Liabilities to Investors Insurance Scheme.
This doesn’t protect against market risks associated with investing. As with any financial instrument, using Robo-Advisor involves the risk of losing all or some of the money you invested.