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It\u2019s time to talk investing! Risk sounds like a scary concept but not understanding risk and investment timeframes can mean your investments earn a lot less. Taking the time to understand the concept is so beneficial for you. Simply, the longer your investment timeframe the more risk you may be willing to take with your investments as you may be more comfortable with the ups and downs in the value of your investment due to market movements. Equally, the shorter your investment timeframe, the less risk you may be comfortable taking.<\/p>\n
\u00a0<\/strong><\/p>\n Your investment timeframe is how long you want to invest for. Sorted have split investment timeframes into the below categories:<\/p>\n <\/p>\n In investing terms, \u2018risk\u2019 can be thought of as a chance your investments actual gains differ from the expected outcome or return. This could mean making a lower return than you expected, no return at all, or even losing the money you invested. Generally, the higher the risk the higher the potential returns \u2013 and the lower the risk, the lower the potential returns.<\/p>\n <\/p>\n Some people like low-risk investments, some people are comfortable with higher risk investments, but it\u2019s essential to know that risk can change. The higher the risk you take, the higher the potential returns you could receive, but the more chance you have of your investments fluctuating in value.<\/p>\n <\/p>\n A good place to start is to check your attitude toward risk, that way you can base your investment decisions on an appropriate level of risk for your situation. Sorted have an interactive investment profile quiz, take it HERE – Investor profiler \u00bb Sorted<\/a><\/p>\n <\/p>\n Whai Rawa also have a Risk Quiz you can take to investigate if your risk profile matches your fund choice. Visit the Risk Quiz and fill out 5 questions at www.whairawa.com\/riskquiz<\/a><\/p>\n <\/p>\n <\/p>\n\n