Risk tolerance

An important part of the investment decision process

There’s no single answer to the question of how much investment risk you should take on. It depends on your individual circumstances, goals and comfort level with risk. Some people are more comfortable with risk than others. Some people are willing to take on more risk in order to achieve their goals. And some people have different tolerance for different types of risk.

Asset allocation

Minimise your risk and maximise your potential return

Investment asset allocation is important because it can help you to reach your financial goals. By diversifying your investments across different asset classes, you can minimise your risk and maximise your potential return.

Behavioural patterns

Shaping the way we invest, for better or worse

Investors should keep things in perspective and not overreact to headlines. Although equities may fall more in the near term, historically market drawdowns due to past military conflicts did not last very long and were mostly buying opportunities.

Pitfalls of market timing

Don’t become distracted by short-term volatility

Trying to navigate the ups and downs of market returns, investors seem to naturally want to jump in at the lows and cash out at the highs. But no one can predict when those will occur. Fortunately, there are a number of time-tested strategies that may help you deal with market volatility. Two of the most prevalent are: invest for the long term, and maintain realistic performance expectations when it comes to returns.