What are investment risk management strategies?

With options ranging from the standard diversification and asset allocation, to more advanced strategies such as hedging and dollar-cost averaging, investment risk management strategies can help you mitigate potential losses and achieve more stable returns for your portfolio.

What is investment risk?

Investment risk refers to the possibility that an investment's actual returns may differ from the expected returns, potentially resulting in financial loss. In simple terms, it is the uncertainty related to investing. Risks are inherent in any investment, and understanding them is crucial for making informed decisions and managing potential losses.

Why is investment risk management important?

By implementing investment risk management strategies, investors can prepare for unforeseen market fluctuations, mitigate potential losses and achieve more stable returns. Need help managing your investment portfolio but don’t know where to start? Consider reaching out to a financial advisor.