Formation of investment portfolio and risk tolerance

The relevance of the article is due to the fact that investments are associated with a certain degree of risk and knowledge of the level of tolerance (tolerance) to risk helps investors plan their investment portfolio. Stock volatility, market fluctuations, economic or political events, and regulatory or interest rate changes affect an investor's risk tolerance. The article discusses the factors that affect the investor's risk tolerance, such as age, investment goals and income. The classification of investors depending on their level of risk tolerance is given. It was concluded that competent balancing, diversification and management of an investment portfolio, through proper rebalancing, taking into account changing risk tolerance, are the main tools for investors to achieve their financial goals.