An investment risk profile is an indicator or guide to determine the level of investment risk that an investor can tolerate or accept in allocating their funds. There are several factors that influence a person's investment risk, such as:
1. Age, in general the younger you are, the higher the risk of tolerance. One easy way to determine an investment risk profile based on age is 100-age = high risk tolerance.
2. Financial conditions, the better the financial conditions, the higher the risk tolerance.
3. Status, someone who is unmarried or single will have a higher risk of tolerance compared to someone who is married and has children.
1. Age, in general the younger you are, the higher the risk of tolerance. One easy way to determine an investment risk profile based on age is 100-age = high risk tolerance.
2. Financial conditions, the better the financial conditions, the higher the risk tolerance.
3. Status, someone who is unmarried or single will have a higher risk of tolerance compared to someone who is married and has children.