When we draw up the risk profile of an individual, it is about assessing risk capacity or the risk that can be assumed. When we talk of risk takers in financial planning, we are talking about investors with a higher capacity for risk. When you have a higher risk capacity, it makes sense to take on higher risk because that is the only way you will create wealth. Asset allocation using the risk based modelAsset allocation varies for different classes of investors with different risk capacities. Designing asset allocation for a high risk takerHow the portfolio should be designed for an investor with a relatively higher risk capacity.

Source: dna February 07, 2019 01:18 UTC