Difference between age, goal and risk

It is said that you should get conservative with age.

This conservativeness generally applies to:

Your investing style is no different.

The more you grow older or move towards retirement, the lesser is your capacity to take risks.

Other than age, the time you need to reach your goals, also known as your “goal horizon”, can determine the risk you can take.

The longer the goal horizon, the more risk you can take.

That’s why less risky investments like bonds can work better for short-term investments.

For short-term goals, you need investments that can give you stable returns.

The Relationship between Risk and Returns

You might have heard this –

Keep reading to find out about the different types of investment risks and how you can minimize them

Let us find about types of investment risks!