Kellands (Gloucester) Limited
Financial Management Consultants
The Mustard House
13/14 Barton Street
Tewkesbury GL20 5PP

Tel: 01684 850088

Fax: 01684 850089
E-mail: gloucester@kelland.co.uk

Attitude to risk

As an investor, your attitude to risk should be central to how you make your investment decisions.

It is a truism that risk and reward are closely interlinked. It is also true that all investors want to get the best possible returns on their investments. However this needs to be counter-balanced by your attitude to risk, when it comes to your actual asset allocation.

The higher up the risk spectrum you go, the greater the opportunity for significant capital growth. There is also a greater potential for losses. Because of this, understanding your risk tolerance is crucial.

So download our pdf and try our attitude to risk survey now and then check out what the results mean on our risk profile page.

If you are investing as a couple, you should both undertake the attitude to risk questionnaire because it may demonstrate appreciable differences in attitudes that need to be taken into account.

At Kellands Gloucester, we find that the results provide an excellent starting point. They certainly provide an objective basis from which to evaluate the right asset allocation for you.

The results may also show a gap between your actual and your perceived risk tolerance. They can also see whether there is a disparity between your current asset allocation and your actual risk tolerance. All these issues should be discussed with your independent financial adviser.

Our risk questionnaire is just the starting point. Other factors also come into play, such as your risk capacity. In other words, you may be willing to take risks but not be well placed financially to do so. So the ability to absorb losses should also be taken into account.

Similarly, timescales have an impact. Those approaching retirement may wish to consider safer investment options, whilst younger investors looking at an investment window of 10 to 20 years will actually find that the likelihood of losses in equities is small and the returns greater. For them, equities carry far less risk.

So talk to Kellands Gloucester about your attitude to risk and your investment portfolio. Contact us now.