Graham Bentley discusses the growing popularity of risk-rated funds
Even at the mundane level, risk governs every decision we make in our lives, from alarming the house, to parking on double yellow lines. Assessing risk before making a decision is natural human behaviour and when it comes to investment the same principle applies: understanding a client’s attitude to risk through a risk profiling process before building an investment portfolio is of paramount importance. When making investment decisions it’s important to understand that for most people the pain of loss is felt more than twice as intensely as the pleasure of an equivalent gain. Investors o...
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