Work with risk

Generally, the higher the risk, the higher the potential return. But risk cuts both ways: higher risk also brings a higher potential for loss.

Successful investors often manage risk by seeking advice, investing over the long term, diversifying and employing experts.

Why seek advice?

Everyone feels differently about risk. If you take out high risk investments only to be consumed by anxiety, you are at the wrong level of risk. You need investments that balance your appetite for risk with the ability to reach your financial goals. Find out where your risk level is so that you can make investment decisions that won't stop you sleeping at night. Use BT's Risk Profiler to help you understand your attitude to risk.

Staying on top of market trends and keeping ahead of new investment opportunities is a job for specialists. That's why many investors choose to tap into the resources and expertise of a professional investment manager, and the personalised advice of a professional financial adviser.

Find a financial adviser using BT's Adviser Referral Program.

Spread your investments and spread the risk. If you have a diverse portfolio, you can minimise your exposure to loss if one of your assets takes a down-turn.

Check out the benefits of diversification.

One of the most effective ways to reduce risk is to invest over the long term. Even traditionally volatile assets such as properties and international shares have less risk when invested over the long term.

Read more about how time can work in your favour.