Understanding your attitude to investment risk
Investment risk can be defined as the chance that the actual value of, or return from, an investment may be less than its expected value or return.
Understanding your attitude to investment risk is probably the most important factor to consider before investing. To achieve higher returns you need to be prepared to accept a higher risk of capital loss. This is because the funds and assets that offer high returns are generally more volatile than those producing lower returns. This is often referred to as the ‘risk/ return trade-off’.
Our risk profile questionnare can help you understand your attitude to investment risk and what investments might be best suited to you. Try it today.
