Investment Risk Management

What Are The Risks Of Investing In Mutual Funds?
The most basic concept of risk is the chance of losing money. Many types of risk can impact the performance of your investment.

    Currency Risk: If your assets are held in another currency, then movements in the value of a currency can affect the value of your investment.
    Liquidity Risk: Liquidity risk impacts how easy it is to sell your investment on the open market.
    Concentration Risk: A lack of diversification in your investments may increase concentration risk.
    Political Risk: Your investment can also face potential losses as the result of political decisions made by or forced upon governments.

The main risks that you are likely to encounter in your investments are in the form of Capital Loss or Inflation.
             Capital Loss: The risk that your investment will decline in value. The longer the period that you invest your
                               money, the less likely it is that you will suffer a net capital loss.

History has shown that the longer your investment period, the less risk you face.