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.
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The financial market keeps climbing, driven higher not only by fundamentals but by faith in technology, in policy pragmatism by central banks and governments, and in the idea that the easiest path remains the right one. Staying invested remains key and prudent advice but so is reassessing portfolio structure and diversifying beyond AI.
In the October issue of smzh Investment Guide, we explain why the glass is never only half empty and focusing solely on potential downsides may obscure genuine opportunities. History shows that those who stay invested and stay focused on long-term goals are best positioned to benefit as the glass gradually fills up again.
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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.
