One of the most important and difficult task as a new investor is to make choice between Equity Mutual Funds v/s Individual Stocks. Whether we should invest in equity funds or individual stocks?
Understanding risk appetite, risk capacity and risk tolerance is very important before making any investments or any investment decisions.
Risk taking capacity, appetite and tolerance changes depending upon various information and factors. This can be understood with the help of following points:-
How your Risk Profile changes in your complete life cycle and how it impacts your Financial Profile.
The investment choices that an individual makes should be aligned to their financial risk profiles. The risk profile defines how much risk that particular investor is willing and able to take.