Investment Risk FAQs What is investment risk? Investment risk refers to the possibility of losing money or not achieving the expected return on investment due to various factors such as market volatility, economic conditions, and company performance. What are the types of investment risk? The types of investment risk include market risk, inflation risk, interest rate risk, credit risk, and liquidity risk. How can I mitigate investment risk? Investors can mitigate investment risk by diversifying their portfolio, investing in low-risk securities, setting realistic investment goals, and regularly monitoring their investments. Why is it important to consider investment risk? Considering investment risk is crucial as it helps investors make informed decisions and avoid potential financial losses. By understanding and managing investment risk, investors can optimize their returns and achieve their investment goals. Can investment risk be eliminated completely? No, investment risk cannot be eliminated completely. However, investors can manage and mitigate investment risk through various strategies. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.