Understanding Risk and Return


How much risk do you feel comfortable taking?


How much risk are you able and/or willing to take?


How much risk do you need to take?



We believe that understanding a customer’s attitude to (and capacity for) taking risk is a core part of the financial advice process.
Before we can identify the best investment strategy for you, we need to understand your goals and requirements, but we also need to identify the level of risk you feel comfortable taking, how much risk you are able and/or willing to take and how much risk you actually need to take to achieve your goals, when considering the potential for returns.
Our process is designed to help you understand the implications, in terms of potential gains and losses, that following a particular financial plan might involve.

Putting your attitude to risk into context

As individuals we’re all very different, so measuring your attitude to risk compared to another person needs to be done in a way which is independent, scientific and robust – but above all in a way that makes it crystal clear to you what the implications would be for your financial plan.

Our job as independent financial planners is not to guarantee returns, but to maximise the chances of you achieving your goals. One major part of that is to understand your perception and feeling towards risk.

Markets and economies move in cycles, and attract a fair amount of human emotion as they evolve; this is illustrated in the diagram opposite. Our specialism is in rebalancing the asset mix regularly throughout this cycle so that you stay invested and maximise your returns based on the acceptable level of risk chosen at the start.

We review your risk tolerance and appetite regularly as a matter of course, or sooner if you suffer an unplanned life-changing event (such as inheritance, or bereavement). This fits in with our different Ongoing Service options, that we will discuss and agree with you.