Assessing your risk quotient

Investing

 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: