One
of the key requirements in assessing a suitable investment is a persons
attitude to the age old relationship between risk and reward.
What
factors affect risk tolerance?
Your age, stage in life, personal
temperament, financial goals, planning time horizon and investment
experience each play a role.
You may be a cautious investor and are
willing to accept a lower level of return for a high degree of capital
security or you may be a more adventurous investor and are willing to
accept a higher level of risk for the potential of a greater level of
return