A crucial stage in Lycetts investment service is establishing risk awareness and capacity for financial loss. Once personal circumstances have been established, a risk questionnaire helps categorise investment portfolios.
High Risk: This category is for those clients who are very comfortable with investment risk and capacity for loss. They aim for high long term investment returns and do not overly worry about periods of poor performance and potential losses in the short to medium term. Ordinarily these portfolios can be subject to the full extent and frequency of stock market fluctuations.
Medium to High Risk: Clients in this category are relatively comfortable with investment risk and capacity for loss. They aim for higher long term returns and understand that this can also sometimes mean periods of poorer performance and potential losses. They are prepared to accept significant fluctuation in value to try to achieve better long term returns.
Medium Risk: This represents a balanced attitude towards risk and capacity for loss. Clients do not seek risky investments, but do not avoid them either. They are prepared to accept fluctuations to the value of their investments to try to achieve better long term returns. Portfolios within this category will be subject to frequent and at times quite significant fluctuations in value.
Low to Medium Risk: Those in this category are relatively cautious with their investments and regarding capacity for loss. They want to try to achieve a reasonable return and are prepared to accept some risk and potential for losses in doing so. Typically, portfolios in this category will exhibit relatively modest fluctuations in value.
Low Risk: In this category clients are conservative with their investments and capacity for loss. They prefer taking a small amount of risk and potential for losses to achieve modest or relatively stable returns. They accept that there may be some short term periods of fluctuation in value.
Contact us to learn more about our risk awareness strategies and to take our risk questionnaire.
