The first step toward a tailored investment strategy.
A risk profile forms the foundation of customized investment advice. It combines individual risk tolerance – that is, how well you can stomach market fluctuations – with risk capacity, in other words, the financial ability to take risk and absorb potential losses.
A systematic analysis of personal circumstances, objectives, and financial situation provides a solid base for investment decisions.
Determined by personal circumstances such as wealth, income, employment status, outstanding debt, and family situation. These factors determine how much risk you can financially afford to take.
This is a matter of personal disposition. Some people are more security-minded, while others are more risk-friendly. Risk tolerance reflects your willingness to take risk, deal with market volatility, and accept potential losses.
The timeframe for which money is to be invested also influences risk tolerance. Long-term investments can generally absorb more risk than short-term investments.
Your personal investment objectives and return expectations have a significant impact on risk management and strategy.
Major life events can significantly impact your risk profile. Events such as marriage, parenthood, or retirement can greatly change your financial obligations and goals. Career changes also often affect your profile. In such cases, it's important to reassess and potentially adjust your risk profile.
Whether you seek professional guidance or assess your risk profile independently, a disciplined and systematic approach is essential.
Schedule a free consultation with our experts:
In the current smzh Investment Guide, we demonstrate how investors can stay the course in turbulent times – and where sustainable potential is emerging despite geopolitical risks.
Geopolitical shifts are creating new investment opportunities in Europe. Our latest guide highlights where investors can find opportunities right now.
Don’t miss our monthly Investment Guide – subscribe now and identify opportunities early.
We handle questions about investing such as those shown on the right on a daily basis. We look forward to supporting you with your investment strategy.
A risk profile is an objective and subjective assessment of your ability and willingness to take financial risks. It helps shape your investment strategy and asset selection.
It is shaped by risk capacity, risk tolerance, investment horizon, and financial goals.
Major life events and career changes can influence your profile. Regular reviews ensure that your investment strategy remains aligned with your current circumstances and goals.
You can review your risk profile yourself or request professional support. A systematic approach helps avoid emotional decisions and promotes strategies like diversification.
