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Assessing your risk quotient

Investing

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Mansi Kapur Mumbai
Last Updated : Feb 26 2013 | 1:25 AM IST
 But wait! Shares can bring you big returns and also help you lose your shirt. The key to deciding whether or not you should invest in shares - and how much - depends on your ability to carry on life when you lose your shirt. So the basic thumb-rule is: if you can afford to bet as big as you can afford to lose.

 But if you need greater clarity, you need to understand your risk-quotient. Are you risk-averse, risk-friendly or risk-neutral, or somewhere in between? Here are a few tips to find out:

 AGE: Generally speaking, younger people can - and should - take greater risks. As you grow older, you should be enjoying the benefits.

 Says Sachin Shah, assistant vice-president, Equities Advisory Group, Motilal Oswal Securities:

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First Published: Aug 12 2003 | 12:00 AM IST

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