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The first task of any reputable financial adviser is to establish clients’ financial objectives. What are they looking for from their money? Do they wish to take risks in order to achieve a desired return? Unfortunately, all too often clients come to us with a request along the following lines: “I am looking for a very high return without any risk to my capital. Can you help me?” Be realistic The honest answer is that this combination does not exist – and you should be suspicious of anyone who tells you otherwise. Because it is an undeniable fact: to obtain a better return than the risk-free rate available from bank deposits or top-quality bonds, you need to sacrifice either principal protection or guaranteed income or take an increased risk that your money will not be repaid at the end of the term. And high-yielding foreign currency deposits are not necessarily a solution. Movements in the foreign exchange markets can mean that your interest, and capital, are at risk of being reduced when converted back to your home currency. Of course, we recognise that every investor would like the highest possible returns, but the crucial question is: how much are you prepared to lose in pursuit of those returns? Our risk tolerance check will help you assess your priorities. |
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| Japanese | German | Spanish | International copywriting & localisation by: Jt/WIP |
