What is investment risk?
An investment risk is a chance where actual return on the investment is lower than expected. This includes the possibility of losing some part of or all of the original investment
By looking at the definition, it is easily understandable that no one really wants any risk. But still people take risk. Why? The only reason is hope for higher returns.
People are Hoping higher returns and taking a chance!!
We will cover different ‘risk’ concepts and our understanding of that in the upcoming topics. Diversification is one of the strategy to reduce the risk.
If you deposit money in any nationalized bank return will be around 7 to 8% per annum. If you invest the same money in stock market you may get double of your investment. Which one you prefer? Think of it!
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