Wednesday 28 August, 2019
Putting risk, before reward? That's smart.
While our industry tends to focus only on reward... we believe that a strong investment strategy starts with a careful and up front evaluation of risk.
Your personal ‘risk budget’ is evaluated in a detailed personal discussion with your dedicated senior adviser, and informs every subsequent investment decision they make.
DETERMINING YOUR INVESTMENT 'RISK BUDGET', COMES DOWN TO FOUR KEY THINGS:
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YOUR GOALS What do you want your investments to achieve? |
YOUR CAPACITY What level of risk can you manage in financial terms? |
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YOUR WILLINGNESS What amount of risk are you personally prepared to take? |
YOUR TIMEFRAME What period are you able to keep your money invested? |
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(Your answers also need to recognise that, without risk, there is often limited reward – and an overly conservative strategy, that fails to outpace inflation, can be a significant risk over the longer term). |
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