Attitude to Risk
By making the decision to invest, you're giving your money more chance to grow than if you're just saving it.
How much risk you take will affect how your money will grow so it's important to understand how much risk you're willing and able to take.
Calculating Attitude to Risk
We will calculate your attitude to risk by asking you a number of questions.
Every question we ask will be relevant in establishing your attitude to risk, even if the question seems insignificant.
We will share the results of this, and explain how this will affect any financial advice that we offer.
An Appetite for Risk
Those of you who are less risk averse, and have a higher appetite for risk could potentially receive greater gains out of your investments. Equally however, combined with higher risk investments could result in more market volatility. Consequently, this could lead to losses in your investment.
Those who are more risk averse, and have a lower appetite for risk are still able to receive gains from your investments, which will benefit from less market volatility.
Attitude to risk is generally a predisposed trait. Although clients may experience a short term increase in their attitude to risk. Resulting from seeing changes in the financial markets and positive trends in their current investment portfolio. We will recognise these changes and make changes to investments accordingly.
Attitude to risk will contribute an extremely important share to how your finances are invested within your investment portfolio and will be discussed in detail ahead of you going ahead with any recommendations.