When it comes to money matter, common people have natural dislike on risk. After all, most people defin risk as the probability of incurring loss. The greater the risk, the greater the potential loss.
But that is just in one common side. While risk can sometimes work against you, it can also work in your favor. In investing, the greater the risk, the greater the potential for gain.
Risk is present in any financial product, whether it be a simple time deposit or a complex financial derivative. It is only the degree of riskiness that differs. Whenever you invest, absorbing a certain amount of risk is unavoidable and , in some cases, even necessary especially if you want to achieve your financial goals. What's important is that you understand the risk that you are takinga dn are both comfortable and capable of taking it.
To get the percentage of your risk appetite you can take Suitability Test from an investment company.
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