The reason utilities have traditionally been viewed as a safe haven
for risk averse investors is that while people may buy fewer iPhones or designer jeans in a downturn, they still need the lights on, even with the prospect of a US Austerity Plan perhaps akin to what Europe is seeing now.
But very
risk averse investors who are in higher tax brackets and have maxed out IRAs / 401 (k) s may still feel compelled to open such accounts.
Risk tolerant investors tend to be frustrated by the lower performance of slow boats,
while risk averse investors in small fast boats may experience fears and losses (however temporary) that they simply can not tolerate.
Petrobras faces a variety of problems that will likely hold the company back for years and
keep risk averse investors away from the story.
However, with Welltower trading near all - time highs and many bond - like stocks trading at premium valuation multiples relative to history, short - term, more
risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.
The current legal framework makes clear that claimants must be treated
as risk averse investors, reflecting the fact that they may be financially dependent on this lump sum, often for long periods or the duration of their life.
One of the scenarios I could see this working is
for risk averse investors that need to have 4 - 5 year's worth of spending needs in cash to be able to sleep at night (retirees).
A
more risk averse investor would then hold a portfolio the skews toward less investment risk, and the converse would be the case for a more risk tolerant investor.
Personally, when faced with the same situation and some uncertainty about Roth IRA vs. 401K, I did what
any risk averse investor would do.
I like the flexibility that ETFs offer: stop and limit orders can be beneficial to
risk averse investors, and using an ETF for covered call writing provides great diversification for more conservative stock and options investors.
I like the flexibility that ETFs offer: stop and limit orders can be beneficial to
risk averse investors, and using an ETF for covered call writing provides great diversification for more conservative stock and options investors.
Unfortunately for
these risk averse investors they will miss the rally and invest near the top, while the more risky investors will reap the profits.
If the average investor sails in the average investment boat, then the more
risk averse investor should choose a larger, slower boat, while the more risk tolerant investor should choose the smaller faster boat.
While
some risk averse investors might switch to bonds, for most investors dividend yield is simply one factor contributing to the total performance of owning stocks.
MIPs are for
those risk averse investors who like to stay somewhere in between the safe - but - unyielding debt funds and the risky - but - yielding equity funds
ULIPs cater to all kinds of people —
risk averse investors to those with low risk taking ability to individuals with high risk appetites.
MIPs are for
those risk averse investors who like to stay somewhere in between the safe zone of debt funds and the risk zone of equity funds.
In comparison,
a risk averse investor can be better off putting money in fixed deposits and debt mutual funds, which are paying 8.50 - 9.25 per cent annually (pre-tax).
srikant sir suppose one is
a risk averse investor and he adequately invested in PPF... so why it shouldn't be a debt component, because the post tax return is good than FD or debt fund.correct me if said anything wrong.