Minimizing your investment risks

[Nomad]

Investment is always risky, the only difference is some assets are less risky where as some assets are high risk. For instance, depositing money in fixed deposit bank account is less risky compared to investing in mutual funds. Investing in mutual funds is less risky than investing in stocks. As an investor, how do you minimize your investment risks?

 

[Springtime]

I think a diversified portfolio helps. I have fixed deposits, stocks, mutual funds and bonds.

 

[Kross]

You have to invest very little amounts at the start. Don't put too much money in a investment even after it has paid you.

 

[riberet19]

Doing in-depth research is one of the most effective ways to reduce risk, another is to diversify your portfolio, there are other ways but these are the main ones.

 

[Suba]

Although each type of investment instrument requires different handling to minimize risk, such as in property assets we do not need to think about market risk because prices will always rise. So in general to minimize risk you need to put money in different instruments, adjust to the risk profile.

 

[Augusta]

To minimize investment risk, you can diversify your portfolio across different asset classes and use strategies like asset allocation