Knowing Risk Is Very Important To Make A Profitable Portfolio

In the last 10 years, the Nifty has given an average return of 12% to investors, but, during this period there have been many occasions when investors have suffered huge losses.
Knowing Risk Is Very Important To Make A Profitable Portfolio
To have a good investment portfolio, an investor should know his risk appetite.

It is very common to have losses in the short and medium term in the stock market, as its mood is volatile. Uncertainty of returns is the biggest risk of investing in the stock market.

In the last 10 years, the Nifty has given an average return of 12% to investors, but, during this period there have been many occasions when investors have suffered huge losses. To have a good investment portfolio, an investor should know his risk appetite.

Make a risk assessment

Investment expert Melvin Joseph said, "During market volatility, investors who had more risk appetite, stayed in the market and made profits in the long term. To build a good investment portfolio, an investor needs to know his risk appetite. Therefore, every investor must evaluate their risk appetite.

Very important assessment

Risk assessment is the trick to professionally building an investment portfolio. A risk assessment tells investors about their risk appetite. This shows that the investment will be profitable.

Here are the advantages

This makes it easier for the investor to cope with the market corrections in the short term and easily achieve his goal of making a hefty fund in the long term.

Risk Assessment Three-Step Process

1. Firstly, it determines the risk appetite of the investor. In this, it is decided to what extent the investor can take the risk.

2. After this, the investment history of the investor is seen and the risk taken by him in the past is analyzed.

3. The risk appetite is then compared with the risk-taking limit set at present. Only then the portfolio with higher returns is selected.

Knowing Risk Is Very Important To Make A Profitable Portfolio
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