What is investment risk?

There’s usually some risk involved whenever you invest. Naturally, this depends on how and where your money is invested.

By their nature, some investments are riskier than others. For example, it’s easier to predict how a long-established company in a mature sector (for example, food or pharmaceuticals) may perform than a start-up in a new industry.

If you are uncomfortable with risk, you might prefer more stable investments such as government bonds. However, most investors usually aim to create a portfolio that balances less risky investments with ones that offer good possibilities for growth. This approach would help protect your investment while giving it a chance to grow.

An Ask Acorn financial advisor will carefully check your attitude to risk before making any savings or investment recommendations.