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Money Market Fund asset allocation is MOST appropriate for a risk-intolerant older customer with a short investment time horizon

What Is Risk Tolerance?

An investor's level of risk tolerance is determined by how much volatility there is in the value of their investments. Risk tolerance is a crucial factor in investing since it frequently influences the kind and quantity of investments a person makes.

Which type of investment would a person with a high risk tolerance?

Lower risk tolerance is frequently connected with the purchase of bonds, bond funds, and income funds, whereas higher risk tolerance is frequently related with investments in equities, equity funds, and exchange-traded funds (ETFs).

Which of the asset allocation strategy is suitable for risk-averse investors?

Risk-averse investors who want a certain amount of active portfolio management but value the security of establishing a guaranteed floor beyond which the portfolio is not permitted to decline may find insured asset allocation to be ideal.

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