The greater the risk, the greater the reward.
It’s a statement we’ve all heard referenced in many areas throughout our lives. However, in the investment world, we have some caveats: Taking on more risk with your investments may increase your likelihood of higher returns, but you may also experience the downs of the investment markets, including the risk of losing some or all of your investment. Can your proverbial stomach take that? Investing is sometimes a balance between playing it safe and settling for less or taking some risks with the hopes of gaining more return. In finance, just as in life, you can’t avoid risk completely, but you can try to manage it and make it work in your favor.