Sentences with phrase «of investment risk»

This is because of one or more types of investment risks covered below has become a reality.

If the level of investment risk in your portfolio causes you stress, you may have accepted more risk than you are willing to tolerate.

These portfolios allow you to invest your assets according to the amount of investment risk you're comfortable taking and the return characteristics you prefer.

Getting your asset allocation right should be one of the priorities of your investment risk management plan.

Because of investment risks, variable policies are considered securities contracts and are regulated under the federal securities laws; therefore, they must be sold via a prospectus.

Market risk and specific risk make up the two major categories of investment risk.

«Risk measures» is the term used to describe the historical predictors of investment risk and volatility.

Now that you have a basic understanding of investment risk, you can set risk targets and other goals.

For example, if clients recently experienced a strong market, they are likely to be more tolerant of investment risk.

The most common definition of investment risk is price volatility: How much do the prices of your investments vary — day to day, month to month, or year to year?

Did you notice that dividend paying stocks fall somewhere in the middle of the investment risk spectrum?

Here are some of the different types of investment risks.

An aggressive portfolio is subject to a relatively high level of investment risk.

These portfolios allow you to invest according to the amount of investment risk you're comfortable taking and the potential return characteristics you prefer.

Because of investment risks, variable policies are considered securities contracts which have regulation under the federal securities laws.

It is important for you to cautiously assess the existence of each category of investment risk, and its amount in whatever investment opportunity you may think about.

The most widely used measurement of investment risk is volatility, or unpredictability.

He also found that «public - sector employees shelter more of their retirement savings from tax than other Canadians are permitted to shelter,» and third, that «taxpayers bear much of the investment risk taken by public - sector pension plans while the reward for risk - taking goes to public employees as higher compensation.»

These investors require additional upside potential as well as downside protection from the rights of the preferred shares in exchange for the high degree of investment risk.

Nuveen Asset Management's head of investment risk management and portfolio manager Chris J. Neuharth is to retire from the firm on June 1.

Modern Portfolio Theory was developed in the 1950's with the belief that portfolio returns could be maximized for a given amount of investment risk by combining assets in a particular manner.

With Variable Life you're shifting much of the investment risk from the insurance company to yourself.

We'll accept some amount of speculative market risk if internals improve sufficiently, and some amount of investment risk if valuations improve sufficiently.

She said the tax concession was therefore to ease the effect of the investment risk and sustain the attractiveness of the project to the financiers and other major players.

Whether its stocks, bonds, real estate, a business, and even your savings account, it pays to understand the different types of investment risk involved in anything before putting your money to work.

Data collected by the S.E.C. shows that target - date funds vary widely in terms of their investment risks, even when they use similar target years or names.

Types of Investment Risk Importance of Diversification Know Your Investment Horizon Different Types of Fund Categories How to Choose a Fund That Fits Your Portfolio Use an Investment Checklist

Using knowledge of your investment risk tolerance, we also presume that you have decided upon an appropriate asset allocation across the primary cash, bond, and stock asset classes.

Needless to say, this mental state is not the best condition in which to conduct a cool and dispassionate analysis of investment risk.»

Partly, this is because I am not a believer in the conventional view that a person should take a lot of investment risk when young and less as they age.

However, the predictability and transfer of investment risk of the CPF Life ensures that my survival expenses are met even in bad times.

«While we believe all RMA providers should provide historical performance, we don't believe this is the most appropriate way to explain and account for the overall value of an RMA to an investor for this reason: The three main drivers of investment risk and, therefore, long - term performance are not directed by the RMA,» researchers argue.

Research conducted by YouGov on behalf of digital wealth manager Scalable Capital, has found that investors still don't understand the reality of investment risk, ten years on from the global financial crisis.

There are three kinds of investment risks.

«Of course it's true that you can not generate returns over the long - term without taking on some measure of investment risk,» he notes, «but this does not mean that all the risk you are taking over time is being compensated equally.

In this 27 January 2009 article Clear and present danger: the trinity of risk, James Montier writes about the three primary and interrelated sources of investment risk; Valuation risk, business or earnings risk and balance sheet or financial risk.

In this 24 September 2007 blog post called The myth of exogenous risk and the recent quant problems James Montier argues that many aspect of investment risk are endogenous (like a gambler playing poker, where the actions of the other plays are integral to the game) to the way in which we invest.

Understanding the types of investment risk allows an investor to manage risk and optimize outcomes.

The US, Australia, Indonesia, Canada and Malaysia have the greatest exposure, accounting for three - quarters of investment risk.

With a non-guaranteed policy the owner, in exchange for a lower premium and possibly better return, is assuming much of the investment risk as well as giving the insurer the right to increase policy fees.

All - Star Funds typically have at least a three year track record and compare favorably against their peers based on historical return, risk, expenses, manager tenure, performance and style consistency, asset size and growth and must be 1) structured through sound investment philosophy and process, 2) implemented with acceptable level of investment risk management strategy and 3) supported by a reputable investment firm.

Our friend Peter Matin formulated the Ulcer Index as described in An Alternative Approach to the Measurement of Investment Risk & Risk - Adjusted Performance.

Investments seeking higher rates of return also involve a higher degree of investment risk.