How to assess your risk profile before investing in Switzerland

Before investing, you need to know your risk profile. It is the main cause of decisions people later regret.

The three fundamentals

Risk capacity: How much can you afford to lose? Depends on income, expenses, reserves and time horizon.

Risk tolerance: How much volatility can you emotionally withstand?

Investment horizon: When do you need the money? A 30-year-old can take more risk than someone aged 55.

Common mistakes

Selling in panic during market falls. Over-investing in your own sector. Neglecting diversification.

Before acting

Consult a qualified advisor. Understanding the risk profile is the essential first step.