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High risk portfolios will usually invest in shares that can give high returns provided they perform. That is why it is called a high risk portfolio. In case the sector is not performing well, then your losses will be high. A person, who is prepared to face losses and is okay with taking financial risks in the market, should opt for this portfolio. However, in the current day economic conditions such portfolios are difficult to come by.
A medium risk portfolio is the one which spreads out the risks evenly. It could be a 50 percent risk ratio or slightly more or less. Half the investments would have bonds and securities that have fixed income and others might be in shares where the income may vary. So overall one may get a medium level of income from this type of portfolio. However, it is better to invest more money in such portfolios and let it perform instead of keeping the money at bank.
A low risk portfolio will have more bonds and securities that provide standard income. The number of shares investments will be very low. The level of risk is also low as it ensures certain kind of return. However, the income is fixed in such type of portfolios.
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