Return, risk and building a portfolio

Risk, diversification and what to do next
Thursday 12 Jan 2017 Author: William Cain
Returns and risk are often two sides of the same investment coin. Understanding both is key if investors want to achieve their financial goals with the fewest possible hiccups. Returns are usually well understood because they are easily calculated after making an investment. Focusing on risk and diversification helps investors comprehend not only the outcome of investments but also how and why those results were achieved. Risk and the...

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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.

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The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.