Understanding investment risk
Understanding investment risk
The relationship between risk and return is often referred to as the ‘risk-return trade-off’. In general, investments that have the potential for high returns are more volatile over the short term and are considered more risky. On the other hand, investments that provide a lower rate of return are generally less volatile. An acceptable level of risk depends on your specific circumstances and we suggest you consult your financial adviser to help you determine your risk tolerance.