Call: 020 8296 1799
Call: 020 8296 1799

Risk and Return

Why understanding your attitude to risk is so important when you are deciding your personal investment strategy


Attitude noun
1. The ways a person views something or tends to behave towards it

Risk noun
1. The hazard or chance of loss


Risk profiling is a core element of the financial planning process

Before we can identify the best investment strategy for you, we need to understand your goals and requirements. As a first step we shall work with you to identify the level of risk with which you feel comfortable, when you are considering investing your money.

Our tried and tested, ‘Attitude to Risk’ process is designed to help you understand the potential gains and losses, that a particular financial plan might involve. 

Putting your attitude to risk in to context

As individuals we’re all very different, so measuring your attitude to risk compared to another person, needs to be done in a way which is independent, scientific and robust. Above all it must be done in a way that makes it clear to you what the implications would be for your personal financial plan. That is why our process will give you a risk score from 1 (least risk) to 10 (most risk) which acts as the basis for our discussions and will allow you to decide the risk level best suited to you.


Identifying your attitude to risk

The way we work with you

The process we follow has been developed by leading experts and has proved to be simple yet effective. By following the steps, you can be confident that the risk profile we agree upon for you will be accurate and will reflect what you want to achieve from your investments.


We shall ask you to:

Complete a simple questionnaire
Developed by experts this is designed to show your opinion of different financial scenarios and should be answered with reference to your financial goals
Checking the results
We shall, with you, review your responses to ensure they are consistent and reflect your opinions so we can help accurately identify your risk level.
Determining appropriate risk and return
Before we settle on a profile which best suits your objectives, we shall help you to understand what a ‘risk profile’ really means in terms of the potential for monetary losses and gains over a given time.
Applying our expertise to develop your investment strategy
By understanding your attitude to risk & return in this way we can ensure your investments are managed in the most appropriate way to achieve your goals.

Risk is not for everyone

Not everyone is comfortable with the possibility of incurring investment losses. If you feel that you are not prepared to accept any investment risk you should consider something very low risk such as a cash based investment. It is important to remember however, that the real value or purchasing power, of your investment is likely, over time, to be eroded by inflation.

Higher Risk Investments

If you are a very experienced investor and have a high risk tolerance, you may want to consider investing in a more aggressive portfolio. These investments which may include holdings such as single company shares are very high risk. You could lose some or all of your money and there may be other associated liquidity risks. Although there is also potential for greater gains.


Balancing your risk

The Address

MLP Wealth Management Ltd
36 High Street



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If you wish to register a complaint, please write to Mr Paolo Standerwick, Complaints Handling Officer at 36 High Street, Banstead, Surrey, SM7 2LS, email or telephone 020 8296 1799.

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