Investment objectives
Do you want to increase your current income, manage your available liquidity, and provide yourself and your family with a comfortable standard of living? Whatever your objective, it will determine the choice of suitable financial instruments and their optimal mix in your portfolio. Note that the investment products used to achieve your goals have different levels of risk and potential returns
Ability to take risk
In order to match desire with opportunity, first of all, it is necessary to know the term over which assets will be invested. A longer investment horizon gives a greater degree of flexibility in portfolio construction, allowing you to focus on current projects and not worry about capital preservation. In addition, your need for liquidity and the confidence that your lifestyle will not change if the value of your investment portfolio declines temporarily is important
Behavioral loss tolerance
We may share common aspirations or the ability to withstand a financial crisis, but attitudes towards risk are what make each investor truly unique. To assess this complex subjective factor of an investment risk profile, consider six components: risk tolerance, risk preference, financial knowledge, investing experience, risk perception and risk composure
