8. Risk Profiling and Asset Allocation
Introduction
Every individual has financial goals but not many know how to go about achieving them. They may not have the investment knowledge or expertise to design an investment plan that optimises their savings. Consequently, they adopt the passive approach of leaving all their savings in deposits. By doing so, they have already made an asset allocation decision, one that is very conservative. They soon realise that this simple investment plan will not work as it is not compounding savings fast enough to keep up with inflation. They need to invest more wisely so that their savings earn sufficient returns ...
Get Personal Financial Planning, Fourth Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
