Learn about Risk & Return

As individuals, we all have very different opinions and attitudes to the things that crop up in life. Individual attitudes towards investments are no different, and will range from the cautious to the highly speculative investor. It is dependent on what we are comfortable with, and our own attitude towards risk.

In short, the principle is that low risk investments are associated with low potential returns, and that high risk investments, with their greater level of uncertainty, offer higher potential returns.

In other words, the more you are prepared to risk, and therefore potentially lose, the higher the potential returns. We cannot expect to achieve returns on our investments without an element of risk. The key is finding a balance so that investments match our own risk profiles, whilst offering us the opportunity to generate some profit, but still allow us to sleep at night. To help manage risk, make sure you invest in different asset classes.

If this all sounds a bit confusing – don’t worry – we’re here to help. To get specialist help with your financial investments come and see a Legal & General Financial Adviser at a local Bradford & Bingley branch. They’ll be able to talk you through all of the above, in a clear, easy to understand way.

Investing doesn’t have to be a gamble, and with careful planning, it is possible to make a good return on investments and manage risk.