Everything in life carries an inherent risk. From any situation, if you want to reap rewards, you may have to take chances or expose yourself to some uncertainty. Similarly, when it comes to investing, risk and returns are two sides of the same coin. Stock market prices can move up or down depending on external factors. For example, the stock price of a company can jump up if foreign exports are rising or if the government passes favourable business policy and it can fall if the sales reduce due to change in consumer needs or if the government bans exports on goods.
Watch this video to learn more.
Key Takeaways:
1) There are risks involved in investing, which can impact the returns you make.
2) You can protect against most known risks with some simple strategies.
3) Start investing early and hold investments for the long-term to ride out volatile periods.
4) Take help from an investment advisor to identify the right investment products for you.
Disclaimer:
An investor education initiative. Mutual fund investments are subject to market risks, read all scheme related documents carefully.