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What is investment risk?

Risk is how likely the chances are that the returns from your investment could be negative. And when investing, it pays to remember one hard truth: there’s no guarantee that you’ll see a return.

How likely you are to see your balance go backward generally depends on what investment you choose to invest your money in. It’s up to you to decide what your tolerance for risk might be – in other words, how comfortable are you knowing that the returns on your investment could rise and fall.

Watch this video and learn more about investment risk and what it means for your investment balance.

Understanding investment risk

And if that's not enough, you can read more about investment risk and what you need to think about here, or give our investor risk profile tool a go and get an idea of what type of investor you are.