What are the risks?

All investments involve a relationship between risk, return and time. Everyone would like a bump-free ride. While there is no way of guaranteeing that, there are ways you can reduce the risk you could be exposed to.
Look before you leap
Man leaping off jetty.
Smooth out the risks

Diversification is a strategy used to balance out returns and spread risk across a number of assets. With a diverse managed fund portfolio, you don't have to rely on the performance of a few shares or asset classes.

See how diversification can protect your investment in our 'Investment basics' section.

Time is the best healer

Time can add another dimension to risk. When you don't have much time, there is a greater chance of fluctuations with some types of investments. However, when you invest over the long term, these fluctuations tend to smooth out. Even with traditionally volatile asset classes, such as international shares, investment risks are smoothed out in the long run, and may have higher returns over the long term.

Find out more about BT's Investing Truths.
Know your own risk level

A simple tool called a Risk Profiler may help you to work out where you stand on the risk scale. You can assess the level of risk you feel comfortable with, and model some suitable investment strategies. You should regularly review your risk profile to ensure your investment strategy is still right for you.

Go to the Risk Profiler.
Find out more about investment
Download a copy of 'Investing made easy' (PDF 1.73MB).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's managed funds.