The Best Portfolio on Acorns App Investment

I think the hardest part of investing with the Acorns app is choosing which portfolio is the best suited to our investment needs.
Time Horizon
A time horizon or planning horizon is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end. Wikipedia.org

If you have about 20-30 years before you retire, an aggressive portfolio is ideal. It provides the maximum capital appreciation, however it assumes that you wont need the money invested for 20-30 years. Aggressive portfolios requires a long time horizon and market is always going up and down. Patience is a virtue in investing. There will be ups and downs.


Diversification
Spread the Wealth. Equities are wonderful, but don't put all of your investment in one stock or one sector. Investopedia.com

The good thing about Acorns is that they use 6 exchange trade funds (ETF) focusing in different sectors. They have Large Company, Small Company, Emerging Market, Real Estate, Government Bonds, and Corporate Bonds. Acorns invests on each ETF depending on your investing style.

What's Best for you
This is hard to answer.

For example, I am 22 years old and my investing style right now on Acorns is Moderate. Now, those with investment experience will realize that I have a very long time horizon. One would expect for me to put my money to a more aggressive portfolio.

But why did I choose to invest my money on the Moderate portfolio?

It's more to do with risk-tolerance. The Moderate portfolio is a safe investment with 39% invested in bonds with very little risk on volatile markets like 10% Emerging Markets and 19% Small Cap Stocks. However, it still provides growth with 16% invested in Large company stocks and 16% Real Estate Stocks.

Emerging markets and small cap stocks are just too risky for my liking. A lot of them are one time hit wonders or momentum stocks.

Check your investment horizon, diversify, and do your own due diligence.