What is the distribution of investments in the Combo theme?

Sorry if this has been answered elsewhere, I couldn’t find it. I’m on the Combo theme and my total value has dropped but the graphs for the themes all show a rise. Since the only cards showing drops were bonds, it got me wondering how my balance is split.

Hey @katvoira, thanks for your question and apology for the delay :smiley:

Your balance is split dependent on the risk level chosen when you signed up. If you picked Cautious, you’ll have around 70% of your portfolio in Bonds, if you picked Adventurous it’s around 80% in stocks.

But in short, showing performance of your balance gets complicated when making multiple contributions - which is the likely reason why you’re seeing the total value of your portfolio dipping, but the sub-theme graphs rising.

The graphs you have in your app will be showing you the value of the sub-themes relative to their initial value. So during that time the value of the sub-themes will have gone up and down (volatility).

If you made an initial deposit, and then sometime later you made another deposit when the value of the sub-theme was higher, it is possible that because you bought at this point, the value dropped afterwards and that is why the total value has dropped, whilst the graphs are rising.

This stresses the importance we place on regular investing. By investing a smaller amount on a monthly basis, you can buffer your portfolio against market volatility. Over the long-term (5-10) years this can be an effective way of growing your money. It’s a concept called Dollar-cost averaging (or Pound-cost in the U.K.!).

There’s a discussion on this here: Performance Graph Improvement 📈 if you were interested in looking! :slight_smile:

Hope that helps, and happy to clarify anything else too!