Planning your investment: Step 3 - Know the concepts of investing: Understanding Risk

Risk is an indicator of expectation about the potential gain or loss associated with investing over time.

If you expect to make a large gain in a short period of time, the risks would be high.

However, if you prefer long term investments, the level of risk would be lower.

As the time period of an investment becomes longer, the variation and volatility in returns tend to be lower.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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Knowledge Base ID :   1412
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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