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Tag Archives: diversifying your investments

What is Your Risk Appetite?

The following is a guest post. If you would like to submit a guest post, please contact me.  There are an endless amount of investment vehicles and assets available to investors today and it can be difficult to pick the ones that best suit your needs. If you are considering investing for the first time then the first thing you need to do is assess your risk appetite. Once you have managed this, you are ready to do some research and put together your own portfolio of investments. What is risk appetite? Also known as risk tolerance, risk appetite refers to your desire and ability to take on financial risk. The financial markets are in constant flux and risk is essential for profits and losses to be made. Risk can be measured in terms of the likelihood of the risk occurring and also its impact. The general rule of thumb is the higher the risk you take on, the greater the potential reward. How much risk should I take on? To answer this question, you will need to look at more than just your personal attitude to risk. The most important factor is your personal circumstances, in particular your proximity ...

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