What comprises my Risk Tolerance?

Risk Tolerance and Risk Profiling

Risk profiling is a process for finding the optimal level of investment risk for your client by balancing their risk required, risk capacity and their individual risk tolerance.

 

Risk Required

Risk Required is the risk associated with the return required to achieve the client’s goals from the financial resources available.

Risk Capacity

Risk Capacity is the level of financial risk the client can afford to take.

Risk Tolerance

Risk Tolerance is the level of financial risk the client is emotionally comfortable with.