Risk Capacity + Risk Appetite + Risk Tolerance = Overall Risk Profile

Understanding risk appetite, risk capacity and risk tolerance is very important before making any investments or any investment decisions.

Factors Affecting Personal Risk Profile

Risk taking capacity, appetite and tolerance changes depending upon various information and factors. This can be understood with the help of following points:-

Financial Life Cycle based on Personal Risk Profile

How your Risk Profile changes in your complete life cycle and how it impacts your Financial Profile.