Investment risk. What is it?

Whoever you choose to advise you, your risk profile should always be the same. This, we can guarantee, will never be the case as every firm will have different ways to understand and assess your risk profile. Some will be better than others. Some will be very subjective. Some will be overly technical. Some will rate you as a 3.3765 out of 10, or as a ‘cautious’ investor, whatever that means.

We take great care to fully understand your own position. We’ll explain what the risks are in plain English; we’ll discourage you from doing something you might later regret. We only want to advise you on a portfolio that is right for you. We’d rather we go our separate ways than have you invest in things that will give you sleepless nights or that are so complex that nobody truly understands them.

We successfully steered our clients through the 2008 credit crisis and various periods of volatility since the 80s. How? By not shoehorning them into weird and wonderful products designed by companies that are more interested in their own bottom line than yours. Ask us what we mean and we’ll happily help you to read between the lines……

This time served approach, refined over 3 decades of experience and successful outcomes means we are confident that if or when you do invest with us, you will fully understand the key issues and you will never have overcommitted.

So what are the risks?

We believe there are 3 distinct elements to your risk profile:

1. Your perception of risk

2. Your tolerance of risk

3. Your capacity for loss

Only you really know how you will react to different situations. We therefore rely as much on you as you on us when we come to assess and agree your risk profile. Your instinct and answers will directly shape the recommendations we make and how we manage your portfolio.