Your WEALTH MATTERS BLOG

Diversification is one of the best risk-mitigating strategies people can employ in their portfolios. Mitigating risk is the sensible choice and including investments that are not correlated to each other is one way to accomplish this.

As we have written in previous blog posts, risk is a broad measure that needs to be evaluated in the proper context. The overall risk is based on the combining effect of the various risk factors at play. When it comes to evaluating the overall risk tolerance of a client, we use a multi-pronged approach which goes beyond simply filling out a questionnaire.

Any time you invest money, you should be expecting some kind of return. The cost of this return is the risk that you’re taking: many investors would suggest that the greater the risk you take, the higher the return you should be rewarded.