Today’s topic is risk profiling for your portfolio. This is a very personal component of your investment experience. Your risk preferences are likely different from mine, your neighbors, your colleagues, or your spouse's. It’s really like a fingerprint for your investment process.
So let’s focus on the three risk components of risk:
- Risk capacity: can you handle it?
- Risk need: Do you actually need to take the risk?
- Risk tolerance: What is your general feeling towards risk?
Watch to learn more.