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Is investing all about my attitude to risk in Sri Lanka?

In large part, yes; the more attractive the potential rate of return on offer, the bigger the risk to the capital that you invest. That applies across the whole spectrum of savings and investing products, from deposit accounts to shares. How much you should invest and what you invest it in will depend on three key factors: your attitude to risk; the level of return you want to achieve; and how long you are prepared to invest your money.

If you are, for example, close to retirement you won't want to take too many risks with your money. On the other hand, if you have few commitments and are several years away from retiring, you may be prepared to take a punt and invest in something with a high risk in the hope of getting a high return. If you want to aim for a higher level of return but still with a relatively low risk element, then you should be prepared to tie your funds up for some time.

Most forms of investment offer greater potential returns for those prepared to invest for the long-term, although this isn't guaranteed.


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