Investors face many different kinds of risk. One of the most common is the variability of returns. If returns don’t meet expectations,
investors may not be able to meet their goals or fund their ideal lifestyle.
All investments carry some risk due to factors such as inflation, taxation, an economic downturn or a drop in a particular market. Even if you choose an investment traditionally considered ‘safe’, such as cash, there is still a risk of inflation eroding the value of your capital or falling interest rates reducing the level of your return. For more information about the different types of risk investors face, see the table overleaf.
Information in this document is based on current regulatory requirements and laws, as at 1 July 2020, which may be subject to change.
When deciding which investments are right for you, it is important to understand the trade-off between risk and return and how to manage investment risk.
By setting goals, planning ahead and being smart with your savings and debt strategies – you can actively grow your wealth even from a
modest start.
