Smart Money

PUBLISHED : Monday, 17 September, 2012, 12:00am
UPDATED : Monday, 17 September, 2012, 4:59am

Sites to help understand risk and volatility:
Volatility has become the ready excuse for poor portfolio performance. But what does it mean to your risk profile? This site tries to teach individual investors how to understand and balance risk and reward through its "Knowledge Centre" section. The "Risk & Reward Guide" explains how to make diversification work for your investment needs. You'll sleep better at night once you can understand and accept the risks you are taking.
This blog, run by a certified financial planner, explains issues that affect individual investors. His section on "5 Ways to Reduce Investment Volatility" instructs how to structure your portfolio to avoid market volatility. Other resources help you understand volatility measurements used by fund managers and find income earning instruments such as preferred shares and bonds.
Investment sites for small investors are teaching about risk and volatility because no one will invest if they don't understand the opportunities or pitfalls. The "Investing" section offers questionnaires to determine risk profiles and build portfolios to suit your retirement goals and maximise your returns relative to risk. It offers advice like "10 strategies to deal with volatility" for those who are confused and sceptical about investing.