Risk tolerance or risk capacity — which one should guide your investments? - Risk tolerance vs risk capacity: The crucial difference every investor must know

Your investment success depends on finding the right balance between your emotions and your finances. It’s not just about how much risk you can afford, but also how much you can handle without losing sleep. If your investments make you anxious, you may end up making poor decisions. The key is to choose a plan that fits both your comfort level and your financial reality. Risk tolerance vs risk capacity: The crucial difference every investor must know