Is investing risky?

2 min read

There’s always some element of risk involved in investing. The associated risk can be higher or lower depending on the type of investment you choose, but it’s never zero. 

In the investing world, a low risk investment will usually be more stable and generate lower returns while a high risk investment will often be more volatile and result in higher returns. 

When the amount of profit is greater than the initial investment, your investment can be said to have given you positive returns. 

Investing is different from saving because you have the potential to earn more money in interest. The money you invest goes into things like businesses. This is what leads to profits – your money grows as the companies grow and earn money. But this might also result in losses too.