HOW DO I BALANCE RISKS WITH REWARDS?
The general rule with investment is, the greater the risk, the greater the potential reward. Before any investment, you should consider the risk and your attitude towards it. This is a personal matter, and everyone is different.
Some people choose to invest only in low risk investments, while others favour higher risk products that offer the possibility of higher returns. Or you decide on a mixed approach to risk: for example, investing initially in low risk investments to give relatively strong protection for your capital.
With these more secure investments in place, you could then use any spare cash to invest in higher risks products which offer the possibility of higher returns – in effect, choosing a balance of lower risk and higher risk investments.
These are only sample strategies, however. The choice is yours, and you should always consider your options carefully and, where necessary, take professional advice before deciding on your investment approach.