When considering an investment product, such as a Stocks & Shares ISA or General Investment Account, it is important to think about your attitude to risk and capacity for loss.
Attitude to risk: Your attitude to risk is how comfortable you are with taking financial risks in the face of possible greater (but not guaranteed) rewards. You may be cautious, adventurous, or somewhere in-between.
Capacity for loss: Your capacity for loss depends on how much you could afford to lose in your investments without negatively impacting your overall financial situation.
All investments carry a degree of risk, and the value of your fund could rise or fall. At Imperium Advice, our independent advisers work with clients to help them understand what level of risk is appropriate for their circumstances and objectives. We have access to a bespoke portfolio service and a range of model portfolios made up of multi-asset funds, to suit varying levels of risk.
Your dedicated financial adviser will ask questions about both your risk attitude and capacity for loss to determine which portfolio type is best for you. Their recommendation is always to put you in the most suitable position that balances both your attitude to risk and capacity for loss. For example, you may have the ability to withstand a considerable financial loss, but not be willing to take such risk. Your independent financial adviser will determine both as part of the advice they give and use the information you have provided when making their recommendation.