What is an investment risk profile?
This beginners guide to investing suggests that investors’ risk profiles may vary from defensive to aggressive. The risk profile should determine whether the investor opts for a stable income stream with no downside risk to capital, or whether they accept large volatility in investments, with the promise of substantial capital gains in the future. Check out the five risk profiles outlined here. Where do you fit? In Summary … Being financially prepared is an important first step to becoming a stock investor. Equally important is having clear financial goals and being aware of your risk tolerance. This will ensure that you will sleep well at night and be ready to invest in the stock market with confidence! Beginners Guide to Investing – Getting SET in the Stock Market Having decided that value investing is for you, what do you need to know before you start buying stocks? Here are some points to help you find out … • What are stocks? A companys stock is the shares in the company that
