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Sunday, 16 December 2018
Managing Risk When Investing E-mail

Dear Colleague,


Kindly take note of this interesting activity entitled Managing Your Risk When Investing.   The event is being held in collaboration with the Chamber’s corporate sponsor Bank of Valletta.  Please refer to the below event information and programme.


This is a free of charge event.  Kindly confirm your participation by forwarding an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it by not later than 10th April.  For security reasons, since the event will be held at the BOV premises, when confirming your attendance, you are kindly requested to forward your full name and surname as shown on your ID card together with your ID No.  You will also be kindly asked to present your ID card at the door on the evening of the event.


We look forward to seeing you.

 

Best Regards,

 

Inġ. Michael D’Amato

Activities Secretary

 

 

Managing Risk When Investing

A decade on from the financial crisis, what have we learnt?  As cheap money floods global economy, is there a similarity to what happened ten years ago?

Prior to the crisis, high risk investments tended to be associated with equities, while low risk investments were linked to Government bonds, Cash accounts and bonds. The market volatility that ensued after the 2008 market crash indicated that the risk conventionally associated with these investment has changed.

A basic definition of the term ‘risk’ shows that it involves the probability that the actual return will differ from the expected return. Risk is focused primarily on the downside which may lead investors to lose capital. Therefore, a good understanding of what risk is and the basic strategies for managing risk, is becoming increasingly more important in today’s markets.

Against this backdrop, Fund Managers have, in recent years, developed a new concept whereby funds are being set up with their composition dictated by the risk appetite of the investor and not by the prescribed investments in that fund.  Rather than investing in single securities, the individual investor may choose the portfolio which best fits his or her risk appetite. These kind of funds have a distinct level of expected return linked to the volatility of the markets which cater for individuals with a different tolerance to risk.


Last Updated on Tuesday, 03 April 2018 20:02