## What’s the difference between Core Portfolios and Higher-risk Portfolios?

We don’t qualify our portfolios based on expected returns. Instead, we qualify them based on how much risk to which you’ll be exposed. Every StashAway portfolio is defined by the StashAway Risk Index, which indicates the potential loss of the given portfolio. Our Core Portfolios have a StashAway Risk Index between 6.5% and 22%, and our Higher-risk Portfolios have a StashAway Risk Index between 26% and 36%.

**What's the StashAway Risk Index?**

To calculate the potential loss of a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, which can be interpreted as a portfolio having a 99% probability of not losing more than a given percentage of assets in a year.

Here’s an example: a StashAway portfolio with $100,000 and a StashAway Risk Index of 10% has a 99% probability of not losing more than 10%, or $10,000 in a year. In other words, there is 99% probability that your portfolio’s value won’t decrease below $90,000 if you select a 10% StashAway Risk Index.