Are you actually avoiding risk in investing?

Let’s keep things simple and to the point. People mostly keep away from investing in equity or related instruments to avoid market risk which is ‘temporary’ and ‘uncertain’ and most of the times, over a long period of time, it is highly rewarding.

And in the process of avoiding the above risk they embrace a ‘certain’ risk called inflation by investing in instruments whose returns are eaten away by inflation over a period of time.

Moral of the story: Don’t just adhere to fix return investments; diversify and invest in equity and equity related instruments as well.

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