Pre-Investment Risk Checklist with FundBucks

Risk Management with FundBucks

Before building a portfolio, investors should understand goals, time horizon, liquidity needs, loss tolerance, currency risk, and asset-class exposure.

Risk Management with FundBucks

Short answer

Risk Management with FundBucks

The FundBucks risk checklist begins with whether the portfolio fits the investor’s goals and tolerance for volatility. It then reviews liquidity, concentration, currency, time horizon, and diversification.

Risk Management with FundBucks

Goal and time horizon

Risk Management with FundBucks

A growth portfolio with a multi-year horizon differs from a portfolio that needs near-term liquidity.

Risk Management with FundBucks

Concentration and diversification

Risk Management with FundBucks

Reliance on one stock, sector, or asset increases sensitivity. Diversification may reduce concentration risk.

Risk Management with FundBucks

Liquidity and currency

Risk Management with FundBucks

Global investing introduces currency and liquidity considerations.

Risk Management with FundBucks

Pre-Investment Risk Checklist with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Short answer

Risk Management with FundBucks

Goal and time horizon

Risk Management with FundBucks

Concentration and diversification

Risk Management with FundBucks

Liquidity and currency

Risk Management with FundBucks

Continue to FundBucks risk management

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks

Risk Management with FundBucks