InvestingGuide
What New Investors Should Understand About Risk
Risk is not one number. It includes volatility, time horizon, concentration and the chance of permanent loss.
Daniel Cho7 min read
Investing topic
Investment Risk
Investment risk is the possibility that returns will differ from expectations, including the chance of losing some or all of the money invested.
Why it matters
Risk is not one number. Volatility, concentration, inflation and liquidity all affect outcomes differently, and understanding them is essential before investing.
What this topic covers
- Volatility
- Permanent loss
- Concentration risk
- Inflation risk
- Risk and time horizon
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This page is for informational purposes and does not constitute individualized financial advice.