Identifying and
Understanding Risk


Managing Risk


Risk vs. Reward

 

Risk vs. Reward


While all investments involve some degree of risk, Investment Advisors can provide information on the potential risks and rewards associated with different investments. It is very important for investors to decide on their own what risks they are willing to accept to achieve their long-term investment goals. Investors could use the following questions to help them understand where they are and where they want to be.


What is my time frame?

What returns do I want to achieve?

How much price fluctuation is acceptable?

What is the potential return on this investment?

What are the potential risks of this investment?

What is a reasonable holding period?

How does this investment fit my portfolio?

What is the track-record and investment approach of the investment managers?

How does this investment help me achieve my goals?