What are the risks involved with investing?

There is no such thing as a ‘risk free’ investment. Whether it’s shares, property or bonds, there will always be a level of uncertainty about how each investment will perform.

 

As a general rule, the greater the risk you’re prepared to take, the greater the potential return on your investment.

 

Let’s say, for example, you’ve got $2,000 to invest.

 

If you’re uncomfortable with the possibility that your investment won’t perform as expected, you may be better to look at lower risk investments such as a term deposit. This investment locks your money in for a fixed period of time and safeguards the return you’ll get on your money. The risk is minimal but, as a result, the return on your investment is also generally low.

 

Alternatively, if you’re comfortable with higher risk, you may, for example, invest in the share market where the potential for a higher return on your money is greater over the longer term.

 

Investing can be a complex process. If you’d like more information on investing to increase your financial security, call an Insight Investment Services Adviser today or simply click below and we will have an Adviser contact you immediately.

 

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