RISK MANAGEMENT BASICS
Risk Appetite | Risk Capacity | Risk Tolerance
RISK APPETITE
Your willingness to take risk.
Eg: You might be willing to take a risk of ₹10,000 on a particular stock. Having a good risk appetite does not mean you should take risk.
(1/3)
Risk Appetite | Risk Capacity | Risk Tolerance
RISK APPETITE
Your willingness to take risk.
Eg: You might be willing to take a risk of ₹10,000 on a particular stock. Having a good risk appetite does not mean you should take risk.
(1/3)
RISK CAPACITY
Your ability to take risk.
Eg: You might be willing to take a risk of ₹10,000 on a stock but your financial situation like an upcoming loan EMI might not permit you to take that risk. Age, income level, job stability affects your risk capacity.
(2/3)
Your ability to take risk.
Eg: You might be willing to take a risk of ₹10,000 on a stock but your financial situation like an upcoming loan EMI might not permit you to take that risk. Age, income level, job stability affects your risk capacity.
(2/3)