Align Investment Decisions With Risk Appetite – Desmond Bredu

Head of Client Coverage at Stanbic Investment Management Services (SIMS), Desmond Bredu, has highlighted the need for investors to assess their risk appetites before making investment decisions.

He made this statement in an interview on TV3's morning show, New Day. Speaking on the topic, ‘Smart Money Moves; Understanding Savings and Investments’, Desmond Bredu explained the importance of aligning your risk appetite with your investment goals. He said, “Every investment comes with a level of risk.

Instead of running away from investments to avoid risks, it is important to know your risk appetite level.

If you know yourself and which category you fall in then you can align your investment goals properly.

All other things being equal, the higher the risk, the higher the expected return.” He added that, “Investing is a good way to grow your money and manage your wealth.

This is when lifestyle inflation comes into play and you have to be more conscious about your savings.

It is better to take out your savings first and then you can use what is left as your expenditure.”