Intermediate Attitude to risk:
While investing the money it should be noted that it is a process of intermediate attitude to risk. There are basically two components while preparing the investment portfolio for £500,000. One of the two components is ability of the investor to take risk. This component is basically takes in to account the age, income requirement and time approximation for the retirement. The second component of this risk will depend on the willingness of the investors which will reflect in the portfolio.
The investment portfolio will depend on the customer’s personal experiences and for different firms or assets the investment approach will be different and unique. For this the discussion with the firm or assets is must to have the complete overview for the same. With the range of investing classes or individual holdings within your range of offshore bond the investment portfolio will depend.
For this investment we can assume that the attitude of the client risk is intermediate. As it is a personal proposal so the allocation of the asset, balance of risk, return will be based on the client’s attitude and personal experience. Generally the most defensive portfolio will consist of 31 percent in equity; higher allocation will be for cash & bonds. But these intermediate portfolios will have the maximum allocation as defensive portfolios up to 56 percent. If the investor can go for higher level of risk, the highest allocation of the budget can be done as progressive portfolio that is around 81 percent.