Welcome Back Readers... Risk Bearing Capacity There is a famous verb ‘Don’t carry all your Eggs in one basket.’ The same logic is applicable while estimating one’s risk bearing capacity. In simple words risk bearing capacity is nothing but one’s financial as well as emotional ability to handle the incidence of loss or non-profit or low profit situation, if occurs in future. Many times, loss is also relative. For Instance, Mr. A has invested Rs. 1,00,000 and he expects 10% returns in a year which is Rs. 10,000. Suppose, in an expected investment frame, the recognized return is Rs. 9000. Though there are returns earned, they are less than the investor’s expectations. Here, how the investor looks and reacts, means if he sees half glass filled or half glass empty; will decides his Risk Bearing capacity. Though, human nature is an unsolved puzzle... Investors’ nature is generally segregated in three major types. ...