Switching % of funds from high risk to low risk? Pension AVC

[AuntieAntik]

I have a small amount in an AVC. Last year I transferred to the 'let me do it' option and switched funds to two high risk funds. These finds made a 25% gain in the last few days so worth 3K are now worth 4k. Do I move some of the 'profit' into some lower risk funds, or leave it all in the high risk funds?

Context - I have many years until retirement and and just playing with the money to see how I can do. I was not happy with the growth previously when it was managed for me and was invested in very low risk funds.

I’m not a FA so these are just my own thoughts on it..

Although all investments carry some risk, in longer term investing there is a difference between ‘risk’ and ‘volatility’ Though they are often grouped together they are not really the same.

So an example of high risk might be investing in just one or two stocks, or in more unstable situations such as emerging markets or crypto currencies. There is the possibility of high losses which might not recover.

On the other hand, some funds can be volatile - the price can move up and down a lot over the year - or over several years - but their trajectory over a much longer timeframe is an upward curve.
An example of this might be a global index fund or S&P 500 tracker - funds that are well diversified. Over the past 20 years they have grown on average about 9-10% a year (this does not mean that in any one year they will have made 10% profit but averaged over 20 years).

Now, low risk funds offset this tendency for volatility by including more predictable investments in the fund - usually bonds. This provides stability in the price in the near term, but in the longer term it is likely to depress returns overall because bonds usually have a fixed but lower return than shares.
This has some advantages to fund managers because they can’t predict when an investor might decide to cash out their investment, or perhaps their clients need a stable return for income every month.

In your situation - are your investments actually high risk? Or are they in a well diversified index fund with a good track record over many years but with more volatility in the shorter term?
If the latter and you have many years before retirement, then planning for good returns on your investment is likely to be less influenced by such volatility.

what is the fee for buying and selling?
where would you move it to that is lower risk?
i'm in canada but did similar was unhappy with the investment group, and took over self directed 14 months ago. not a huge gain (compared to stories i read) but i'm ahead way more than when my investment group were in control.
and i feel it's in lower risk holdings vs the mish mash i inherited from the group.