As year-end approaches, newspaper and media compare returns of every asset like Equity, fixed deposits and gold. What purpose does this comparison serve? People invest for meeting financial goals. People invest to grow...
Category - Managing Risks
Team-MoneyWorks4meRisks in investing and the Role of an Advisor
Since childhood we have heard and internalized this saying, “No risk, No gain”. We have learnt that Fixed Deposits in State Bank of India is the safest. And without doubt it is but the returns we earn does not beat...
What are the Different Risks at the Portfolio-level?
The Rule No. 1 of Investing is, ‘Never lose money.’ And, the Rule No. 2 is, ‘Never forget rule No. 1’ – Warren Buffett Your Stocks portfolio can have 7 types of risks: (A) At Stock-level: 1. Business Risk, 2...
What are the Different Risks at the Stock-level?
The Rule No. 1 of Investing is, ‘Never lose money.’ And, the Rule No. 2 is, ‘Never forget rule No. 1.’ – Warren Buffett Your Stocks portfolio can have 7 types of risks: (A) At Stock-level: 1. Business Risk, 2...
How are your Risk Profile and the Current Portfolio Size Linked?
Your portfolio-size will be adequate, if the returns from that portfolio are able to support your goals. Goals include things that you need or wish to provide e.g. higher education for children, marriage of children...
How does your Current Source of Income Affect your Risk Ability?
Risk Ability or the answer to ‘Can I afford to take risks?’, is the capacity to bear risk or sustain losses without a significant impact on your lifestyle. And, your source of income has a major influence on your...
What is the Risk Ability and Willingness/Tolerance in Investing?
Risk Willingness/Tolerance and Risk Ability: Investments should be made logically, with an attempt to minimise risk while meeting your long term financial goals. Whenever there is uncertainty of what the outcome will...