Investing without risk is something we would all do if the option were available but risk is inherent in all investment decisions.
Investing without risk is something we would all do if the option were available but risk is inherent in all investment decisions. Markets can fall as well as rise meaning there is the potential to get less out than what you put in.
But over the long term investing has been proven to provide better returns than savings in cash. There are many ways to reduce the risk to your investment, the most popular being investing in lower risk funds and investment trusts that focus more on preserving your money at the expense of rapid expansion.
You can also reduce risk by diversifying your portfolio, a well-known phrase that in basic terms means having your money spread across different sectors, markets and geographies so that if one were to drop the overall health of the other selections will carry your portfolio through a volatile period.
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