Category: Risk and Diversification

Risk is everywhere, whether doing something as mundane as drinking, walking, or whether investing. Your comfort with risk is generally correlated to your personality and lifestyle. If you have chosen to invest in stocks...

There are two basic risk types: Systematic risk Unsystematic risk Risk that could affect a broad spectrum of assets is called systematic risk. For example, a political event has the potential to impact many...

The iron stomach test is synonymous to the risk-return tradeoff. An important investment decision that must be made is on deciding the amount of risk you can take on. The ratio is the balance...

With the stock market being so unpredictable, individual investors need a safety net. To address this need, diversification comes into the picture to help prevent the entire portfolio from losing value. While diversification does...

Attaining the right mix between risk and return will be a big help to move you one step closer to your financial goals. Tolerance to risk is not static. It varies from one individual...