Investment risk
Understanding risk
We all have different attitudes toward investing risk. Firstly, you need to think about what you want to save or invest for - what is your goal. Then, think about how comfortable you are with the possibility of losing money, what your time frames are and how you emotionally deal with volatile returns.
For example, how would you feel if your investment was to fall by 5%, 10%, 15%, 20%, 30%, 40% or more than 50%!
Your attitude to risk can influence your investment strategy as much as your financial circumstances. This is a decision that is very specific to you but it is an important one as you want to able to sleep at night.
If you’re not sure what sort of investor you are, our online risk profiler tool can help you understand more about investment risk and what levels of risk you feel comfortable with. Based on your answers, your financial circumstances, time horizon and your investment goals we can also suggest some funds that maybe suited to you.
Everyone should be diversified!
For many investors a key ingredient to successful investing has actually been diversifying your investment - and also ensure that you have a suitable investment allocation towards ‘growth assets’.
This essentially means spreading your investment over a range of assets so that no one asset type has a significantly large influence on the overall return. However, over the longer-term you really need to have as much money invested into growth assets as possible. This involves a trade off between risk and reward.
The impact of this is highlighted in one of attached blogs - where we look at investment returns compounding at 6% per annum versus 2% per annum for a pension investor.
The differences are quite significant.
We have access to the widest range of investment solutions available
A wide range of investment solutions is available today that can help you diversify and share in the rewards of investing. Options are available from LOW-RISK to HIGH-RISK.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
RETIREMENT & PENSIONS | INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE
Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.