What is a risk tolerance level?
At BEA, we classify customers’ risk tolerance level in four categories: Conservative 1 (Low Risk) Willing to accept lower returns in exchange for a higher degree of stability and certainty, with an emphasis on capital preservation. Balanced 2 (Medium Risk) Willing to accept some investment risk in exchange for a higher but stable return. Growth 3 (Medium to High Risk) Willing to accept more investment risk in exchange for a high potential return over the medium-term. Aggressive 4 (High Risk) Willing to accept a higher level of investment risk in exchange for a significant return over the long-term.
At BEA, we classify customers’ risk tolerance level in four categories: Conservative 1 (Low Risk) Willing to accept lower returns in exchange for a higher degree of stability and certainty, with an emphasis on capital preservation. Balanced 2 (Medium Risk) Willing to accept some investment risk in exchange for a higher but stable return. Growth 3 (Medium to High Risk) Willing to accept more investment risk in exchange for a high potential return over the medium-term. Aggressive 4 (High Risk) Willing to accept a higher level of investment risk in exchange for a significant return over the long-term.
