BUSINESS
The Most Common
LegacyFX Introduction
INVESTMENT RISKS
THE MOST COMMON INVESTMENT RISKS
LOSING MONEY ON AN INVESTMENT IS THE MOST COMMON KIND OF INVESTMENT RISK.
For many investors, having some modestly risky investments in their portfolio is a good way to increase the likelihood of attaining their goals.
Investors may choose to put their
For many investors, having some
money into a ‘safe’ instrument, such
modestly risky investments in their
as US Treasury bonds and bills, but
portfolio is a good way to increase
the price of this safety is a very low
the likelihood of attaining their goals.
return on investment.
Not Reaching Investment Goals
Age and Risk Age is often linked to the amount of risk an investor is prepared to take.
For individuals that have committed
For example, a younger investor may
to an investment goal, not achie-
be willing to take more substantial
ving this target is another common
risks, as they believe they have plen-
investment risk.
ty of time to recoup any losses.
In general, most lower risk invest-
However, an older investor – who
ment opportunities come with a
may be only a few years from reti-
lower rate of likely return. Increasing
rement – may not want to risk the
the value of the investment and the
capital they have built up to serve as
length of time it’s in place can be a
their pension.
way to mitigate this.
To learn about the reward risk ratio, visit the blog of LegacyFX.