Risk Reward
Investments in Dundee
Risk Profile
- Different people have different attitudes to risk.
- You need to be clear about the degree of risk you are willing to accept.
- This is a difficult area as everyone views risk differently.
- There is a balance between risk and potential return - generally speaking, higher risk investments usually mean that higher returns may be achievable BUT also the risk of losing money is increased.
- Lower risk investments generally incur lower returns but a lower risk of losing money - nothing is ever set in stone though!
- Risk is also related to how long investment is undertaken. With Stocks and shares you should be taking a longer term view - most commentators advise that a minimum 5 year investment time frame is wise.
- Risk can also be in terms of how you invest. Investors wishing to minimise risk should consider a broader investment spread as opposed to investment in a specialist area.