Would the real risk profile please stand up – part 2
ANALYSIS: In investment plans, advisers need to clearly differentiate between safe income and income from realised capital gains so clients are aware of risks.
How assessing risk tolerance of a client and expressing that knowledge into specific asset allocation might be improved.
Two weeks ago, we looked at the process of risk profiling, often undertaken by financial advisers when they engage a new client and put together an investment plan. The story outlined the various problems with risk profiling, including the fact that an individual’s attitude to risk can change
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