Choosing the Right Investments
Before embarking on an investment strategy, you need to choose an investment mix that best suits your circumstances. Factors affecting your individual risk profile include your willingness to take risk. Investments and risk go hand in hand, and the relationship between potential return and amount of risk is called the risk/return ratio. The smaller the risk, the smaller the potential return; the greater the risk, the greater the potential for profit. For your financial plan to be successful it must take into account your willingness or unwillingness to accept risk.