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Investing Risk Guide

Investors should always consider the risks of investing in any asset.

Apr 28 2022 - SW DAO

Risk is something that every investor has to consider when selecting investments.

The higher the level of risk, generally speaking, the greater reward but also the greater potentiality in losses as well.

It's important to know what level you're comfortable with:

Level 1 - Conservative

Level 1 funds are designed for investors who want a safe haven in volatile markets. These investments do not often lose value, which means they're perfect if you are worried about large fluctuations in your portfolio's value over time.

Level 2 - Conservative to Moderate

Level 2 funds are a great choice for investors looking to invest with medium to long-term horizons. The minor fluctuations in fund pricing will not affect their investment strategy because investments made are within the Conservative to Moderate category, so there's limited risk involved when it comes time to sell these assets later on down the line.

Level 3 - Moderate

Level 3 funds are appropriate for investors with a long-term investment horizon. These kinds of investments may be subject to moderate price fluctuations, so it's important that you know what kind of risk there is before making your decision on whether or not this is the right fund for yourself.

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  • Thematic Indices
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  • Collection Indices
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  • Fractionalized Domains

Level 4 - Moderate to Aggressive

Level 4 funds are designed for long-term investors who can afford to take more risks with their investments. SW DAO's moderate-to-aggressive investment funds are often diversified but do have high fluctuations in share price.

Level 5 - Aggressive

Level 5 funds are subject to wide fluctuations in share prices. These aggressive investments may be appropriate for long-term investors with an eye on the future, as their high volatility is likely due largely to the unique trading strategies that these particular funds employ. The risk may seem worth it though since these funds offer high return potential but this comes at great responsibility too as a series of bad trades could ruin the fortune of the fund.

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