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Investing

Investing basics

Investing basics: risk, time and diversification

Investing involves uncertainty. The value of investments can rise or fall, and past performance does not guarantee future results.

Understand risk

Different assets carry different risks, including market, inflation, liquidity and currency risk. Consider whether you could withstand losses before committing money.

Diversification

Holding a mix of investments may reduce reliance on a single asset, sector or market, but it cannot eliminate risk or guarantee a profit.

Fees and product details

Read product disclosure documents, understand fees and check who operates a product. Be cautious of claims of guaranteed high returns or pressure to act quickly.

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