Understanding Risk & Reward

Understanding
Risk & Reward

Understanding Risk & Reward

All investments carry risk; however, managing them wisely leads to better outcomes.

Risk is the possibility that your investment will not perform as expected. It's an unavoidable part of investing, but it can be managed.

Types of Risk:

Types of Risk:

Types of Risk:


Market Risk: Overall market declines

Inflation Risk: Money loses value over time

Credit Risk: Borrower defaults on debt

Liquidity Risk: Can’t sell an investment quickly