As with all investing, there is a relationship between the amount of risk you take and the level of returns you could receive (both positively and negatively). The risk profiles of managed portfolios indicate the potential severity of a loss (of value) during a negative period. As a reference, investing into stocks is considered high risk and during a bad period the stock market could lose around 20% or more, based on historic events.
Low-risk portfolios are expected to experience much less fluctuation (of value) than stock markets;
Medium-risk portfolios are expected to experience notably lower fluctuation (of value) than stock markets;
High-risk portfolios are expected to experience similar fluctuation (of value) to stock markets;