Tag Archives: risk profiling

How much risk should you take on your investments?

Golden Guy Balancing Risk

If you approach any financial advisor/planner for advice on where to invest your money, one of the first questions posed by them would be if you are comfortable investing in riskier avenues for better appreciation of your wealth. Some of the well established financial planning outfits would also have you fill up a risk profiling questionnaire asking questions like how would you react if you lose money on your investments etc. to find out how much risk you would be willing to take in order to get better returns on your investments. In other words, they are trying to understand your risk appetite.

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