We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies. You can view our cookie policy and edit your settings here, or by following the link at the bottom of any page on our site.
Shortfall risk definition
Shortfall risk is the possibility that you may not reach the investment target that you initially set out to. Previous performance does not guarantee future returns, so you may fall short of your original forecast.
Shortfall risk definition
Shortfall risk is the possibility that you may not reach the investment target that you initially set out to. Previous performance does not guarantee future returns, so you may fall short of your original forecast.
Shortfall risk can be partially mitigated by investing over the longer term, as a ‘bad year’ will have less of an impact on the longer investment. Potential shortfall risks can also be combatted by diversifying a portfolio, as this decreases the systemic risk. However, systematic risk will still remain.
IG Smart Portfolios
Invest in an expertly managed portfolio, at a fraction of the cost of traditional wealth managers and independent financial advisors (IFAs), with an IG Smart Portfolio.