All investments carry a certain degree of risk, it’s part of the very nature of investing and you can’t avoid it. However how you can manage the level of risk that you’re exposed to in relation to what you can afford to lose and what your psychological appetite to risk is.
The more risk you take on, the higher the reward may be, but also the bigger losses that you may incur, not to mention sleepless nights if you’re investing outside of your comfort zone.
So not only is it important to consider what you can afford to invest financially, it’s wise to think about what you can afford to invest mentally.
If you’re not sure whether an investment is right for you please seek independent advice.
How to Manage Risk
Being realistic about what you’re expecting to gain might help you work out the kind of risk you’d have to take on to get there.
Keep a diversified portfolio
Never risk more than you can afford to lose
Take a long term investment view and know that time is on your side
Always have enough liquid capital for emergencies
The information available through Tbc Consultants Ltd is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by Tbc Consultants Ltd and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.