Deciding on an investment strategy involves assessing your attitude toward risk. With great risk comes the possibility of great reward – or great loss. So are you better off making small, consistent steps toward growing your wealth? Or should you take a risk and hope for a big return? Many people want a combination of these qualities, but for each person, managing risk will be unique.
Finding the right investment strategy to build up your wealth, and help it grow, involves understanding how you feel about risks, based on what you might get in return.
What kind of tolerance do you have for risk? These questions can help you start thinking about what type of investment strategy is right for you:
Am I more interested in big returns, even if I might lose some of my investment?
Would you rather have a consistent, stable, anticipated amount of return?
Is it possible for my investments to just follow the markets?
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