Investing Decision Lab

Risk Tolerance & Diversification Lab

Build an investment mix, test it against market surprises, and learn why time, fees, emotion, and diversification matter.

Step 1: Mode 1 of 6

Your mission

Investing is not about guessing the hottest stock. It is about matching risk to your goals, spreading money across different investments, and staying calm when markets move.

Investing mode

Choose a practice focus

Use mixed practice for a full simulation, or open a focused mode for a specific tip.

Mixed investing practice

Build a portfolio, test risk tolerance, and practice staying calm through market events.

Risk tolerance check

How much market movement can you handle?

Risk tolerance depends on time, money cushion, comfort with ups and downs, and how soon you need the money.

Years before you need this money10 yearsSoonLong time Emergency savings cushion3 monthsNoneStrong Comfort with a temporary dropMediumLowHigh Need for stable cash soonMediumLow needHigh need

Balanced risk profile52 / 100

You may be able to take some investment risk, but you still need a plan you can stick with.

Portfolio builder

Build a mix, not a guess

Use the sliders to build a simple practice portfolio. Try to keep the total at 100%.

Total allocation100%

DiversificationStrong

Risk matchClose

Broad index funds / ETFs55% Bonds / lower-volatility funds25% Cash / savings15% Single stocks / speculative picks5%

This mix is balanced and diversified enough for a practice portfolio.

Diversification sort

Sort the investing choices

Drag cards into the right category. On touch screens, tap a card, then tap a category.

Diversified fund

Many investments in one product.

Concentrated pick

Depends heavily on one company or asset.

Safer / cash-like

Lower volatility, lower growth potential.

Speculative / hype

High uncertainty or trend-driven risk.

Sort all six cards, then check your diversification thinking.

Market event

Draw a market surprise

Investing gets emotional when prices move. Draw a scenario, then choose the response that fits a long-term plan.

No event drawn yet

Draw a card to see how your practice portfolio reacts.

Estimated change—

If $1,000 invested—

Best habitPlan first

Fees, inflation, and final rule

Make your investing rule

Fees and inflation are quiet. They still matter. Use the sliders, then copy your investing decision rule.

Starting amount$1,000 Annual investment fee0.5% Years invested20 years Inflation estimate3.0%

Growth before fee drag$0

Estimated fee drag$0

Today’s buying power$0

Inflation lessonGrow wisely

Practice activity only. This is not financial advice. Investment values can rise or fall, and students should talk with trusted adults or qualified professionals before making real financial decisions.