Your understanding of the risks involved in investing
It is important that when making decisions in relation to your financial planning that you are aware of and fully understand the potential risks involved e.g.
- Capital risk – not getting back as much of your money as you originally invested / losing some of the return already achieved.
- Income risk – where you are investing for income, the risk that the income level achieved is less than you had expected.
- Liquidity risk – not being able to get your money back when you need/want it.
When you decide to invest your hard earned money, it should only be when you are ready. It is also important that you seek advice to ensure it is being invested in the correct way to meet your goals and expectations. We always advise that you have an emergency cash fund and that you are in control of any debt before you invest.
Our investment process is designed to fully meet the needs and objectives of our clients. We utilise a wide range of investment solutions chosen from the whole of the market to meet the client requirements identified; from full discretionary and bespoke investment options; to risk related model portfolios.
We will need to establish and discuss the following with you: goals and objectives, timescales, your attitude to risk / capacity for loss and what you expect the investment to do.
When investing you need to take account of these risks and consequences that these may have on the achievement of the goals in your financial plan. Risk profiling is the process for determining an appropriate investment strategy for you with regard to risk. It has four primary aspects, your views on which have been taken into account in making our recommendations to you.
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1. Assessing risk required
2. Capacity for loss
3. Risk tolerance
4. Your Knowledge & experience of financial products