Investment Risk

"Investment Risk" refers to the potential for an investor to experience losses or lower-than-expected returns on their investments. It represents the uncertainty surrounding the actual return on an investment compared to the expected return.

All investments, whether stocks, bonds, real estate, or other assets, come with some degree of risk. The nature and level of this risk can vary widely based on the type of investment, market conditions, and external factors such as geopolitical events or economic shifts.

For investors, understanding and managing investment risk is a fundamental aspect of building and maintaining a successful portfolio. Different investments come with different risk profiles.