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We know that nobody invests to lose money. However, it's important to remember
that investments always entail some degree of risk, so be aware that:
The higher the expected rate of return, the greater the risk; depending on market developments,
you could lose some or all of your initial investment.
Experienced financial advisers will tell you not to put 'all your eggs' into one basket.
Asset allocation, spreading your money across equities, bonds, cash and property, is a key to
limiting your risk. A balanced portfolio means losses on equities may be offset by gains on
bonds and property. Length of investment term and your attitude to risk is what will determine
how your assets are spread. |