Heena Sharma Blog

Every financial investor will encounter a trade-off between returns and risks. The reward for greater risk is greater returns. However, it would be best to consider your risk appetite before making any investment. Each investment has a different level of risk. The more you diversify your investments in your portfolio, the lower your overall risk will be. Let us understand what affects the performance of assets and how you can quantify the amount of risk you may face. What is portfolio risk? Portfolio Risk is the total risk determined by the individual risk associated with each asset you hold in your portfolio. The assets you own may fail to perform financially as expected. As a result, it leads to a substantial amount of loss. There are multiple causes for it and different ways to mitigate each category of risk. Let us see what the various types of risks are. Types of portfolio risks Risks involved with individual securities To understand the overall risks involved in portfolios, let ...