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Risk

How to manage your risk


Important information - The value of investments can fall as well as rise, so you could get back less than you invest, especially over the short term. This information isn't personal advice. If you're unsure what's right for you, seek financial advice.

Risk is a certainty in investing. You can’t get rid of it, but you can manage it.

Risk management is all about finding the sweet spot between risk and reward – one that’s right for your circumstances and financial goals.

To understand the potential of you losing money, versus the potential of you making it, there are three main factors in your control:

  • How well you’ve diversified your investments
  • Understanding how much of investing is based on human psychology
  • Length of time you stay invested

Read on to understand more about why managing risk is essential for any investor.

Risk articles

Risk – what you need to know

We take a closer look at why understanding and managing risk is an investing essential.

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Skyscrapers

Understanding risk – why company size matters

Not all risk is equal – some companies carry more risk than others.

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 A man painting

Fortune doesn’t always favour the brave

High-risk investments should only make up a small part of investors’ portfolios. Here’s why.

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A woman looking at a phone

How much risk is right for me

We take a look at how to build an investment portfolio to match investors’ attitudes to risk and goals.

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An investor looking at their laptop

Two common investing mistakes to avoid

Mismanaging risk can derail investors’ financial goals. Here’s two common mistakes to avoid.

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