Investment Risk Analysis & Portfolio Construction
Determine The degree of uncertainty you are prepared to accept in relation to investment returns, in particular the extent to which you are prepared to
experience a negative investment return while trying to achieve positive investment returns.
Once you have established your investment risk tolerance, it is then to determine how to invest your monies.
The following are just some of the considerations:
- diversification
- sectors
- geographical locations
- taxation implications
- cost
- reputable, reliability and liquidity
- management experience
- historical performance
- risk factors
- economic factors