- Time horizon
The longer you invest the more chance you have of recovering any potential losses, as well as more opportunity to benefitting from compound returns. If you plan to invest for the long term you may be able to consider a higher risk fund. You should regularly review the risk you are taking as the time you have left to invest reduces.
- Capacity and reaction to losses
Before investing you should consider how much of the money you could afford to lose. If you're relying on the money for immediate needs, a higher risk investment may not be for you. You should also consider if you're comfortable with seeing the value of your investment going down in the short term, you may be able to consider higher risk investments. A fund that is higher risk will tend to be more volatile than a lower risk fund and could lose you some or all of your money.
It's essential you read the Key Investor Information Document (KIID) and the Fund fact sheet of the specific fund to understand more about it and its risk profile before you invest. Your attitude towards risk may change over time and you will need to reassess if the funds are right for you.