Whatever risk-profiling tools advisers may prefer, writes Fraser Donaldson, the important thing is to understand the science or logic that underpins them and then to be confident in their use
An unprecedented amount of column inches is being written about matching a client's attitude to risk and capacity for loss to an appropriate investment risk rating. The more that is written, of course, the easier it becomes to forget what you are trying to achieve in the first place - and there also seems to be plenty of negative opinion on just about every possible solution. So, let's go back to basics. There are two sides to the equation here - first, and most importantly, the client. There are essentially two types of client - those who understand and are prepared to take some ris...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes