|
Risk is the most problematic concept in investment. Everyone wants the highest return with the least possible risk, but there is always a tradeoff between risk and reward. We believe you should be fully involved in setting your own policy regarding how much risk you are prepared to accept with your investments.
We think it is important to distinguish between risk (dictionary definition: the chance of loss or injury) and volatility (the tendency of an investment to fluctuate in price). It is only by having a clear idea about your present and future financial requirements and the consequences of not having the required resources at specific times in the future that you can assess the importance of volatility and judge how much risk it represents to you.
This is always partly a subjective judgment, and since it is the most important aspect of investing, we always ask clients to think carefully about these issues.We ask everyone to complete our Risk and Return Questionnaire, which is available here as a pdf.
| 
