Investments are made with the aim of earning profit. However, there is always a possibility of losing or earning low profit if not investing in safe options. Such possibilities are called risks in investments. It is always recommended to invest only after understanding all types of risks.

Example:
Investing in the stock market involves a risk of investment. For example – in the stock market you may buy a share for 150 rupees but depending on market volatility it may come down or rise up. This may either bring your profit or loss.