When it comes to investing, one of the first questions that you must have an answer to is: “How much risk can I handle?”

Your answer will determine the way you invest — not just in terms of product choice, but also in how you’ll feel and react throughout your investment journey. Risk tolerance is a deeply personal trait shaped by your goals, time horizon, and even your emotional comfort with volatility.

Unit Investment Trust Funds (UITFs) offer a variety of investment options designed to match different risk appetites. Whether you’re looking for something low-risk and steady or willing to take on more risk for potentially higher returns, there’s a UITF that fits your financial goals and comfort level.

What is an investment risk spectrum?

The investment risk spectrum is a framework that helps visualize how different types of investments come with varying levels of risk and return potential

Think of it like a sliding scale:

• On the left are conservative options like cash and short-term fixed income investments—low risk, but also lower returns.
• On the right are aggressive options like equities—higher potential for return, but with greater short-term volatility.

But it’s important to remember: all investments carry risk—just in varying degrees. Even cash loses value over time due to inflation.

Understanding where you sit on this spectrum helps you choose investments that won’t just grow your wealth, but also help you stay the course without panic during market swings.

The key is not to eliminate risk—but to manage it in a way that aligns with your goals, time frame, and temperament.

What are the three types of risk profiles?

In general, investors fall into three broad categories based on their risk tolerance:

1. Conservative – Conservative investors prioritize preserving their capital. They often have little flexibility in handling a loss of savings even if it potentially leads to higher return. Their investment horizon is open to a short term of 30 days to 1 year.
2. Moderate – Moderate investors are open to taking on a comfortable level of risk. Their portfolios often include a mix of low- and high-risk assets (e.g. fixed income and equities), seeking returns that are higher than the deposit. They are open to a medium term investment horizon of up to 5 years.
3. Aggressive – Aggressive investors take on higher risks in exchange for chances of higher returns. They are likely to invest in equities, requiring higher financial capacity. They are also more willing to invest their funds in for a longer investment horizon, understanding the risks and market volatility.

At Security Bank, we refine these categories even further by including:

• Moderately Conservative (for those between conservative to moderate)
• Moderately Aggressive (for those who want growth but still want some balance)

This allows for a more tailored approach to investing and helps clients match products more precisely to their personal profiles.

Matching UITFs to Your Risk Profile

Here’s how some of our SB UITFs align with different investor types:

For Conservative Investors

Seek potentially stable returns while you park your cash.

• SB Peso Money Market Fund – A low-risk fund that invests in short-term deposits and BSP-approved fixed income instruments. Ideal for parking excess funds with minimal volatility.
• SB Peso Cash Management Fund – designed for short-term stability, with placements in bank deposits, government securities, short-term bonds, and BSP instruments.

For Moderate Investors

Balance risk and return with diversified fixed income assets.

• SB Dollar Bond Fund – Offers potential for long-term growth through investments in US Dollar-denominated fixed income securities. Suitable for moderate investors with a medium- to long-term view.
• SB Peso Bond Fund – Focuses on long-term growth by diversifying into government securities, listed corporate bonds, time deposits, and other marketable instruments.

For Aggressive Investors

Embrace long-term growth through market exposure.

• SB Peso Asset Variety Fund – A multi-asset fund that combines equities, government bonds, and corporate debt. Ideal for investors seeking diversified exposure with high return potential.
• SB Peso Equity Fund – Looks into potentially higher returns and long-term capital growth with investments in equities listed in the Philippine Stock Exchange (PSE).
• SB High Dividend Peso Equity Fund – Ideal for investors who seek returns from income growth and long term capital growth with equity investments from PSE.

Final Thoughts

Ultimately, investing is a personal journey.

You don’t have to chase the highest returns—or settle for the safest options— just because others are doing it. What matters most is that your investments are aligned with your goals, time horizon, and your ability to stay invested, even in rough markets.

Security Bank’s UITFs are designed with flexibility in mind. Whether you’re conservative, moderate, or aggressive, there’s a UITF that supports your path toward long-term financial success.