Why is Risk Profiling Crucial in Financial Planning?

Why is Risk Profiling Crucial in Financial Planning?

What do you usually think of before investing your money?  If you have ever sought financial advice, you would have come across the term risk profiling. Financial advisors are keen to dig out and examine this vital area. So, what is risk profiling all about? Why not just invest your money to generate the maximum returns? Things aren’t that simple. There is a limit to the risk you will be willing to bear for those returns. What is risk profiling? The objective of any investment is to generate an optimal rate of return. But every investment involves a certain degree of risk. If there is a higher risk, a …

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