What is risk comfort level?
What is risk comfort level?
There is a relationship between the amount of risk that investors are willing to take and the potential return they may receive on their investments. In general, investments which potentially earn higher long-term returns (eg. shares) carry the highest risk. The rate of return may vary, and the capital value of the investment can rise and fall. For investments that generally earn lower returns (eg. fixed interest investments and cash) the capital value may fluctuate to a lesser extent.