Risk Management is More Important Than Return Management .
We all have very different attitudes towards risk when it comes to money.
Some of us like to take more risk with the chance of a higher return on our investments whereas for others security of their investments is more important even if it means a lower expected rate of return.
There are 5 different profiles. Each risk profile is associated with a particular rate of return. However, an increasing rate of return means a greater risk of volatility.
|Risk Profile||Rate of Return|
15 & above %
Your attitude towards risk will help determine what mix of investments are suitable for you.