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What is Investment Risk?
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By Ershad Ullah On July 19, 2023

All investments have some form of risk associated with them. In this Fact Sheet, we discuss seven of the more common types of investment risk.

Investment Risk

  • The risk of permanent loss of capital

Poor-quality investments usually experience falls in their value from which they never recover. In extreme cases, their value can fall to zero.

  • The risk of volatility

Investment volatility is the risk of the value of your investment moving up and down. With high-quality investments, their values should move up more than they go down. Investments that are expected to produce higher long-term returns (such as shares) tend to experience higher levels
of short-term volatility.

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