Investor Terms

Risk Profile

Definition

What is Risk Profile?

An assessment of an investor's ability and willingness to accept investment losses and uncertainty.

Example in practice

An investor with stable income and a 15-year horizon may accept more equity risk than someone funding rent next month.

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The identity and due-diligence checks a financial institution performs before serving an investor.

The expected period before invested money will be needed.

The ease and speed with which an investment can be converted into cash without a major price concession.

Tax deducted at source from specified income payments before the recipient receives the balance.

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