What is tolerance to investment risk?

HomeLearning CentreVideos & Webinars

What is tolerance to investment risk?

Risk profiling is an important part of the financial planning process. To be able to advise you on investment we need to assess your tolerance for risk and then use that information to help you make important investment recommendations.

Risk profiling is the process of calculating your attitude to risk with an aim of not only determining the financial risk you have the capacity to take, but also the level of risk you are willing to take. This is a three step process:

  1. We will get you to complete a risk profile questionnaire
  2. We get to know you, and understand your personal and financial goals, we will go through some of your responses with you to ensure the questionnaire response reflects what we have learnt during our discussions
  3. Agree on your risk profile, and then match you with an investment portfolio that matches that profile.


6 Dec

How much insurance cover do I need?


READ MORE
8 Nov

What should I consider with waiting periods?


READ MORE
20 Oct

What is a buy back option?


READ MORE