Join me for a short look at the various investment risks and their relationship to various products and investment vehicles. You can see the relationship in the chart below. What this shows is that whatever investment you choose you have to be willing to accept the risk of the investment.
So what should you do? Here are some things to consider.
- Know the risks associated with your portfolio
- Be comfortable with the risks in your portfolio
- Try to minimize overall risk by actively managing your portfolio
