Risk Assessment Calculator

Evaluate your risk tolerance, analyze portfolio risk metrics, and optimize your investment strategy with comprehensive risk assessment tools.

Risk Assessment

Risk Tolerance Questionnaire

Portfolio Risk Analysis (Optional)

Understanding Investment Risk

Types of Risk

  • • Market Risk: Overall market volatility
  • • Credit Risk: Default risk of bonds/loans
  • • Liquidity Risk: Difficulty selling investments
  • • Inflation Risk: Purchasing power erosion
  • • Currency Risk: Foreign exchange fluctuations
  • • Interest Rate Risk: Bond price sensitivity

Risk Tolerance Factors

  • • Age: Younger investors can take more risk
  • • Time Horizon: Longer periods allow risk recovery
  • • Financial Capacity: Ability to absorb losses
  • • Experience: Knowledge reduces perceived risk
  • • Goals: Objectives influence risk needs
  • • Emotional Comfort: Psychological factors

Risk Management

  • • Diversification: Spread across asset classes
  • • Asset Allocation: Balance risk and return
  • • Rebalancing: Maintain target allocations
  • • Dollar-Cost Averaging: Reduce timing risk
  • • Emergency Fund: Liquidity buffer
  • • Regular Review: Adjust as circumstances change

Risk vs. Return Relationship

Generally, higher potential returns come with higher risk. The key is finding the right balance for your situation. Conservative investments like bonds offer lower returns but more stability, while stocks offer higher potential returns but greater volatility. A well-diversified portfolio can help optimize this risk-return tradeoff.