Ashley Owen, associate director for financial planning at London-based AES International, said advisers need to understand clients’ tolerance for risk.
“Their risk tolerance will dictate which assets classes could be appropriate for their income producing investment portfolio,” he explained.
"In a very broad sense, those with a higher risk tolerance might look at earning dividends from equities – and those at the other end of the risk spectrum might look at earning from fixed-income securities – such as interest payments from bonds.”
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eleanor.duncan@ft.com
