Taking Risk

Taking Risk

The Risks "You can drive as fast as you like but you run the risk of being stopped by the police" "What is the risk of a meteorite falling from the sky to destroy your house?" Risk means different things to different people. 

To you, driving above the speed limit may be not worth the risk, to your neighbour it may be worth the risk to get to work on time.  It is a question of self-judgement on how high you rate the likelihood of an event happening or not.  It is the same when investing your money, be it in shares or any other investment.  Investment risk is effectively the uncertainty of a financial loss or gain.  Shares have risks attached to them like any other investment.  There is the risk of whether you should invest in shares or perhaps a less volatile area. 

There is then the risk of whether you invest in the right or wrong share or should you invest in a range of shares to "spread the risk" either directly or via a pooled fund.  See Share Based Investing .  Are you experienced enough to understand which shares you should be investing in or do you have time to monitor the markets and decide when is a good time to buy or sell a particular share.  Generally, the value of a share can fall as well as rise and is not guaranteed.  There is also a risk that if you do not invest then you risk missing out on any growth of a particular share.  Risk is still a personal matter.  To help you has categorised Risk into five sections which are meant as a guide for you to follow or ignore as you wish.  

Contact us for Taking Risk advice.