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GR Advisory & Training

What is you risk personality?




The level and amount of you risk that an individual can take with reasonable comfort
while investing determines his/her risk personality. Today investors have a large
universe of investments to choose from and these different types of investment have
multiple types of risk associated with it. For example investment in shares is considered
much more riskier than investing in a post office deposit as one is more certain about
return of the principal and the gain expected on the latter than in an investment in
shares, where one can even loose a substantial part of the principal or capital invested.




The mix of investment that an investor prefers depends on the objective for which the
investment is being made and the risk an individual is comfortable with. This risk
appetite in turn depends on various factors.




1|Page
GR Advisory & Training




Source: The Economic Times

The other aspect that determines the risk appetite of an individual is his/her traits. While
some aspects of the an individual's persona may be shaped by the factors above, there


2|Page
GR Advisory & Training

are some inherent behavioral characteristics which relate to the risk that an individual
takes.




Source: http://www.investopedia.com

As an investor it pays off very well when you know yourself first and then tailor
the investments accordingly.




3|Page

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What is you risk personality?

  • 1. GR Advisory & Training What is you risk personality? The level and amount of you risk that an individual can take with reasonable comfort while investing determines his/her risk personality. Today investors have a large universe of investments to choose from and these different types of investment have multiple types of risk associated with it. For example investment in shares is considered much more riskier than investing in a post office deposit as one is more certain about return of the principal and the gain expected on the latter than in an investment in shares, where one can even loose a substantial part of the principal or capital invested. The mix of investment that an investor prefers depends on the objective for which the investment is being made and the risk an individual is comfortable with. This risk appetite in turn depends on various factors. 1|Page
  • 2. GR Advisory & Training Source: The Economic Times The other aspect that determines the risk appetite of an individual is his/her traits. While some aspects of the an individual's persona may be shaped by the factors above, there 2|Page
  • 3. GR Advisory & Training are some inherent behavioral characteristics which relate to the risk that an individual takes. Source: http://www.investopedia.com As an investor it pays off very well when you know yourself first and then tailor the investments accordingly. 3|Page