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 time, 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 might get eaten away by inflation over a period of time.

Moral of the story

Though it might be important for you to invest in fixed-return investment tools owing to the nature of your financial goals, don’t just adhere to fix-return investments; diversify and invest in equity and equity-related instruments as well.

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