Investment means making your money available to a fund manager who manages it according to the chosen strategy. Investors generally receive something back in return. The return and risk may be higher or lower depending on the investment strategy adopted. Whatever you decide, there are a few key principles to bear in mind:
- The higher the return on an investment – in other words, the anticipated yield – the greater the risk, and vice versa.
- We can reduce the risk by distributing money across several investment instruments, such as various equities, for example, in other words through diversification.
- If you decide to only invest your money in the short term, you should assume low to zero risk. A longer investment horizon allows you to assume a higher level of risk depending on your risk appetite.
You should consider the following questions before investing – ideally with your customer advisor: