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AdvancedBrazilian REITs · Lesson A5.1 · Module A5

The four risks this site measures

Module A5: Building and managing your portfolio

11 slides~5 minquiz at the end

In this lesson

  • The four risk questions
  • Why the average answers nothing
  • The risk that moves with price
See the slides
Wall of old dial pressure gauges

Brazilian REITs · Lesson A5.1

“Is this fund risky?” Which risk?

Risk isn't one number. It's four different questions, and each has its own answer.

Dat doris · Wikimedia Commons · CC BY-SA 4.0

The site's yardstick

Four questions, four scores

  • Fund riskis the fund itself fragile?
  • Losing moneybuying at this price, can I lose?
  • Income worseningwill the payout fall from here on?
  • Managementdoes whoever runs it play for holders?

How to read it

From 0 to 5, and 5 is worst

2.6
  1. 0 to 1
  2. 1 to 2
  3. 2 to 3
  4. 3 to 4
  5. 4 to 5

Below 2, low. 2 to 3, moderate. 3 to 4, high. Above 4, very high.

Each in its place

Only one goes into the fund's score

Fund risk

In the score

  • Doesn't depend on today's price
  • Filters the site's 7 portfolios

The other three

Shown alongside

  • Losing money moves with the price
  • Management is already in the score

The idea behind the yardstick

Both things are true

A fragile fund trading far below what it's worth: high fund risk, low risk of losing money. And it's still a risky fund.

Real example · TGAR11 on 09/12/2026

The average answers nothing

  1. 2.6fund
  2. 0.9losing
  3. 2.0income
  4. 2.4mgmt.
average 1.98

A moderate fund, low risk at this price. The average would hide that gap.

Values change with price and data. Educational example, not a recommendation.

The risk that follows the price

How much of the price has no floor?

R$ 100price today−R$ 60estimated floor=R$ 40no floor
R$ 70price fell−R$ 60same floor=R$ 10no floor

Floor: what would be left after selling everything and paying debts, estimated. Illustrative numbers.

Remember this

Three takeaways

  1. Four questionsFund, losing money, income worsening and management — each with its own score.
  2. No averageAdding answers to different questions answers none of them.
  3. Price moves just oneLosing money follows the price; fund risk doesn't.

Quick quiz · 1 of 2

The price drops 30% tomorrow and nothing changes in the fund. Which risk moves by itself?

See answer

Losing money. The price got closer to the value floor. The fund, income and management are the same as yesterday.

Quick quiz · 2 of 2

Fund risk 4.5 and risk of losing money 0.8. What does that say?

See answer

Fragile fund, low price. Buying there leaves little loss to measure, but the fund is still risky. Each score answers its own question.

Lesson complete

Next lesson

A5.2Advanced · Lesson A5.2How many FIIs to own and how to diversifyDiversifying means spreading sources of risk, not collecting tickers.Continue
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Educational content, written for learners. Not investment advice.