Learn About The Risk Return Trade Off And How To Manage It
In Investor Knowledge Series 6 we have chosen a very different topic, something that we have not given too much thought about, but something that is very necessary to know about before investing!
In the world of Investing, there is a correlation between risk and reward. But we do not think about managing risk before we make an investment. When we properly manage the risk, we minimize the impact of risk and maximize the potential of returns.
Mr PRabhu handled the session on Risk Management in Investing.
Here is a brief of what was discussed in the event:
- The importance of risk and money management
- Diversification — what is the correct number
- The concept of draw-down and its importance in managing risk
- Position sizing — how to decide how much of your portfolio should be allocated to one stock to minimize risk
- the importance of stop loss and how to keep stop loss for our long term investments
- what is market cycle
- the top down approach to selecting stock
