Controlling Risk
The decision to invest in index funds
will immediately simplify your investment management, reduce your
investment expenses and help you earn returns consistent with an
appropriate level of risk.
The next step is deciding which
assets to allocate to which index funds.
These
decisions depend on a broad range of variables--such as your personal and
financial goals, and your comfort with risk.
As you probably know, a carefully
allocated higher-risk investment portfolio will generally yield higher
returns--especially when viewed over the long run. But did you also know
that risky securities can be combined in a portfolio to reduce the overall
risk without lowering the expected return?
As experts in the
statistics behind risk management, Compass Financial Services uses
intelligent asset allocation to help clients maximize their expected
returns at the most comfortable level of risk. Click here for a discussion
of the
effects of asset allocation on risk and returns.