What Risks Should I Be Aware Of When Investing?

Q. Hi Josie, my question Is about Investing and in particular the different types of risks when it comes to investing?

Josie’s Answer -There are lots of things that can affect the performance of your investment. These include business risk and market risk.

Business risk is where we might be disappointed by a company’s investment results which can be caused by inefficient management, competitors beating them at their game, changes to the industry etc. It makes sense to diversify a portfolio across different company’s shares and share markets (Australia and overseas). Read more

What is Investment Risk?

Q. Hi Josie. The Share market has had more ups and downs over the past few months than a yo yo competition….One term I hear a lot of financial commentators and even work mates use is “Investment Risk” What do you mean by investment risk?

Josie’s Answer – Thanks for your question…another interesting and quite topical at the moment. Investment Risk for most investors means the risk of losing capital.

Losing capital is never pleasant, but risk can only mean not receiving an appropriate level of income, or the risk of not achieving a desired level of growth. Read more