In every investment we make, there is a certain risk associated with it. Riks tolerance refers to how much an investor is prepared for some losses. Like the famous saying, 'invest only what you can afford to lose.'
There are three types of risk tolerance
1. Aggressive - on this level, investors are a big risk taker and tends to earn the highest.
2. Moderate - investors takes risks lesser than the first one but earn less than the first one.
3. Conservative - investors on this level likes to play safe and doesn't involve themselves on risky investment.
There are three types of risk tolerance
1. Aggressive - on this level, investors are a big risk taker and tends to earn the highest.
2. Moderate - investors takes risks lesser than the first one but earn less than the first one.
3. Conservative - investors on this level likes to play safe and doesn't involve themselves on risky investment.