How risky is The Munro Fund?
Like all equity investments your capital is at risk. However, The Munro Fund is less risky than most because it holds so many shares, about 300. That means the risk to the portfolio from any individual company is reduced. There is still the overall market risk, but you need to take some risk to get a return that is better than the risk free rate available from bonds or cash deposits. All the evidence shows that investing in equities for periods of ten years or more give better returns than other asset classes do.
