Who needs to manage investment risk?
Every investor The idea of implementing effective risk management strategies can seem intimidating at first, particularly if you’re a novice investor. The principles, however, are simple enough for anyone to understand. Don’t assume that you don’t need to worry about investment risk because you own shares of a mutual fund. Mutual funds carry the same types of risks as any other investment, and they can lose value over time. Managing investment risk begins with a focus on your most important investment priorities, such as identifying financial goals, understanding your own tolerance for investment risk and selecting a mix of investments that’s appropriate for your unique needs. Types of investment risk The types of risk you face as an investor should directly influence your risk management initiatives. Depending on the types of investments you choose, you’ll face one or more of the following risks: • Loss of value. While you invest money in the hope of watching your portfolio grow in va
