We manage a range of unit trusts with different levels of risk: As a rule of thumb, the more equities a fund invests in the more risky it is likely to be. However, our part is only half the equation. The way you think about risk relative to performance and the individual tolerance that you have for this are as important, as they influence the investment choices you make. A successful investment is when there is a match between the risk you expect or perceive and the actual risk of the fund. Calibrating your risk tolerance is a problem of psychology and the most difficult psychology to solve is often your own…
An article I wrote about risk and your relationship with it.
Writer Gugulethu Hlekwayo
Editor Daniella Bergman, Rob Formby
Publication Quarterly Commentary