Question

What would be a good investment plan to build for someone who is older but willing...

What would be a good investment plan to build for someone who is older but willing to take risks?

Homework Answers

Answer #1

The risk appetite of a person drives the investment plan. Investing in equity is generally considered very high risk. This is more suitable for younger individuals.

Mutual funds offer a great way to invest with medium risk. Also a portion of the investment must go towards balanced funds which invest in both equities and debt. This ensures that the investor receives some amount of regular income since he is older and would have the need to attain regular income. The portfolio should also consis of corporate bonds and commercial issuances again due to the regular income that they provide.

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