FINANCIAL INVESTMENT OPPORTUNITIES-Mishal kamran.docx

There are different types of attitudes towards risks

Info icon This preview shows pages 2–5. Sign up to view the full content.

View Full Document Right Arrow Icon
There are different types of attitudes towards risks of different individuals. Risk neutral the possibility of high risk involved is ignored and the focus is made on the higher returns. Risk tolerance Risk tolerance is the degree of variability in the returns and risk an investor is willing take. If an investor is not risk tolerant and does not have an understanding of the risks involved which can lead to unexpected results, they might panic. Aggressive investor Aggressive investors tend to have great understanding of market and its demands including stocks therefore they are more motivated to buy risky goods. Aggressive investors seek highest returns by investing highest amounts while also maintaining some secure boundaries. Moderate Risk Tolerance although they do take some risk but they are more inclined towards balanced
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
scheme by considering the time duration of the returns such as 5 to 10 years. Joining large organization shared assets with less unpredictable securities and riskless securities, moderate investors frequently seek a 50/50 structure. Conservative risk tolerance they are willing to take the minimum amount of risks and make sure the future outcomes are 100% guaranteed. Conservative investor looks forward to buy vehicles that are promising and highly liquid. REASONS TO UNDERSTAND RISK ATTITUDE OF INDIVIDUAL Risk attitude is the response of an individual or a group regarding uncertainty of the outcomes. So in order to determine risk attitudes, decision-making where the risk is involved is necessary. Types of Investment include: Stocks, Bonds, Real estates, Precious metals, mutual funds, Antiques and collectibles. Banks Financial Institutes which handle money by channeling them into lending activities either by simply lending money or indirectly through capital market after accepting deposits from different resources and individuals. Bank's Managed funds (Lloyds Banks Uk) - A choice of three managed funds is offered which includes lower, medium and higher. Each with different risk profiles and expected outcomes. - Use online banking to observe your fund's management taking place, alter or increase your investment or switch between three managed funds RANGE OF INVESTMENT -There will not be any amount charged if you sell a piece or the whole investment. -As far as outcomes from the investment are concerned, it can go up and down and there is a probability that the result won't be more than the initial investment. -There are additional costs associated with investment, unlike saving account. There is an ongoing charge of 0.45% of your investment per annum along with service fee of 0.25% of the investment per annum. -One way to grow your investments over time without paying tax is Investment ISAs
Image of page 3
-The growth of investment is faster within an ISA because no tax or any sort of fee is charged on the returns.
Image of page 4

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern