Risk & Return
Nearly all investments have some risk attached – with some carrying more risk than others. Usually, if we take more risk there is a greater chance of higher rewards but also a greater risk of loss.
Finding the right balance between the risk you take and the potential reward is fundamental to any investment plan. Some people are willing to live with the risk of their savings falling in value in the short term, in order to increase the chance of gaining longer-term rewards. Others would like higher returns but are not comfortable with the associated risk. Instead they choose safer investments that carry less risk but also less chance of achieving higher returns over the longer term.
Find out more about risk and return in Investing over your working life.