Camille Van Vyve
11 Apr 2025
Investing and risk: one chart says it all
Investing is a lot like sailing: sometimes calm, sometimes rough, but always in motion. If your goal is to grow your wealth, this chart tells you all you need to know at a glance: higher returns come with higher risk. But here's the good news — risk isn’t something to fear. It's something you can manage, soften, and even turn to your advantage with a few smart strategies.
Short-term volatility, long-term perspective
The chart above shows the performance of portfolios made up of 100%, 50%, and 10% stocks between 2010 and 2025. At first glance, the 100% stock line seems the most volatile — and it is. You’ll notice big swings during key events like the Greek debt crisis (2011), China’s economic slowdown (2015), the COVID-19 crash (2020) and the war in Ukraine (2022).
Long-term gains worth the ride
But look again: despite the turbulence, the 100% equity portfolio delivered +345% returns. The balanced 50% stock portfolio returned +145%, and the cautious 10% stock portfolio returned +35%. Meanwhile, the light green line — representing a guaranteed income portfolio (Branche 21) — earned just +13%. The takeaway? More risk can mean more reward — if you stay invested.
Risk is not the enemy
It’s natural to want to avoid losses. Watching your portfolio dip during a crisis can be nerve-racking. But avoiding risk altogether means missing out on growth. The goal isn’t to eliminate risk — it’s to manage it wisely. And the good news? It’s easier than you think.
1. Manage risk over time: stay invested long term
Each crisis in the chart caused a drop, but the markets eventually rebounded — often stronger than before. Experienced investors know this: markets correct, but they always recover. That’s why a long-term mindset is essential. Investors who stayed calm during the COVID crash in 2020 saw major gains in 2021. A time horizon of several years or more is your best ally.
🕒 Easyvest tip: The longer your horizon, the more equities you can afford to hold — and the higher your potential returns.
2. Manage risk over time: invest regularly
Another powerful approach is regular investing, also known as dollar-cost averaging. Rather than investing a large lump sum all at once, you contribute smaller amounts at regular intervals — for example, monthly. This smooths out your entry points, letting you buy at highs and lows. On average, you benefit from a more balanced cost, reducing the emotional stress of market timing while staying invested in growth.
💡 At Easyvest, this approach is fully automated — you set up your deposits, and we take care of the rest.
3. Manage risk within your portfolio: diversify smartly
You wouldn’t put all your eggs in one basket, right? That’s exactly the philosophy behind portfolio diversification. By investing in ETFs (Exchange Traded Funds) that track thousands of companies across sectors and regions, your portfolio can absorb shocks in one area and offset them with gains in another.
📊 Easyvest portfolios are built exclusively with top-tier ETFs, carefully selected for maximum diversification at minimal cost.
ETFs: simple, effective, accessible
ETFs have become the go-to tool for smart investors. Why? Because they offer:
- Instant diversification
- Ultra-low fees
- Full transparency and liquidity
- Returns that mirror the broader market
Best of all, you don’t need to be an expert to get started — that’s what Easyvest is here for.
Easyvest: Belgium’s index investing leader
For over 10 years, Easyvest has made smart investing accessible to everyone in Belgium. Our mission is to grow your money — without stress, jargon, or surprises. What sets us apart?
- Expertly curated global ETFs
- An intuitive digital platform to monitor your portfolio
- Personal, human support at every stage of your financial journey
Our model combines performance, simplicity, and trust — a fresh alternative to traditional banking.
No growth without risk, no risk without strategy
This chart tells it all: if you avoid risk, you avoid returns. But with the right habits — long-term thinking, regular investing, and solid diversification — you can turn market volatility into long-term opportunity. And with Easyvest, you get the power of global markets — without the headaches.