Risk tolerance

[Shalini.s]

Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand

[Manikandan]

The extend to wish an investor is willing to accept more risk in exchange for possibility of a higher return.an investor with a high risk tolerance is likely to invest in securities,such as stocks in start up companies,and is willing to accept the possibility that the value of his/her portfolio will decline,atleast in the short time.an investor with a low risk tolerance,on the other hand.

[nivetha]

Risk tolerance is the amount of risk that an investor is comfortable taking. Risk tolerance often varies with age, income and financial goals.

[Deepika Nautiyal]

The factors affecting risk tolerance are

1. the time horizon that one has to invest,
2. future earning capacity, and
3. the presence of other assets such as a home, pension, social security or inheritance.

In general, one can take greater risk with investable assets when there are other, more stable sources of funds available.

 

[Arunkumar.B]

An investor’s ability or willingness to accept declines in the prices of investments while waiting for them to increase in value.

[Author]

Posts