Risk Tolerance
Risk Tolerance
Risk tolerance refers to how much risk an investor is willing to take. Changes in the market, volatile stocks, economic situations, and political events can change an investors appetite to risk 🫃🏽
Yes, all investments comes with risk. But understanding how much risk an investor is taking helps in building a stronger portfolio or adjusting an existing portfolio.
Investment goals, available capital, timeline of an investment, and age go into understanding the investor’s risk tolerance.
Disclaimer
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