Investment Risks

Investment risks refer to the potential financial losses that investors may face when they invest in various assets or securities. These risks can arise from a variety of factors, including market volatility, economic downturns, changes in interest rates, and other unforeseen events that can affect the value of investments. Common types of investment risks include market risk, credit risk, liquidity risk, inflation risk, and country risk, among others. Investors must assess these risks to make informed decisions and manage their investment portfolios effectively, balancing potential returns against the likelihood of loss. Understanding investment risks is crucial for developing strategies to mitigate them and for achieving long-term financial goals.