INVESTING REQUIRES A BALANCE BETWEEN RISK AND RETURN

Your risk profile takes into account your overall appetite for risk, your financial position, your goals and your investment timeframe.

By assessing this regularly, we recommend annually or as your situation changes, you can ensure that you don’t expose yourself to too much risk, or alternatively take a too conservative approach and possibly not attain the returns you would like, based on your investment timeframe.

Cash, fixed income, property and shares (also referred to as equities or stocks) are the four main asset classes in the investment world. Each of these asset classes has different risk and return characteristics - cash is often viewed as the lowest risk, while shares are deemed higher risk.

Investing requires a balance between risk and return. The key is determining what level of investment risk you feel comfortable with before you invest.

Generally speaking, a lower level of risk is commonly associated with lower potential returns. Conversely, higher levels of risk are associated with higher potential returns.