The investment instruments in a financial market can be in various form such as common stocks (shares in a stock exchange), unit trust (government-backed and private) and money market instruments. Each of these instruments has their own risk characteristics that require a sufficient level of understanding on the risk tolerance level that people do not always comprehend. It is argued that only after the understanding of one’s risk profile an individual will be ready to invest optimally. This is because the misunderstanding of the risk tolerance level will result in mismatching between risk profile and the type of instruments hence increasing the chances of losses in investment. Thus, it is crucial for potential investors to understand their risk profile before they can even select for any of the instruments to invest. In order to resolve the above issue, this study is developed to facilitate individuals to recognize the amount of risk that they can absorb in order to help them identify the suitable types of investment instruments to participate in. In other words, this study aims to propose a conceptual framework to facilitate individuals in identifying their risk profile before embarking in any types of investments. This study will broaden the scope of literature in this area by providing evidence on Malaysian environment exclusively from the perspective of generation Y and Z.
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In-Text Citation: (Wahid et al., 2021)
To Cite this Article: Wahid, Z. A., Che-Yahya, N., Khamis, M. R., Sahudin, Z., & Kamarudin, M. F. (2021). Risk Profiling and Investment Instruments among Youth in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 241-255.
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