Investment risk refers to the uncertainty of future investment income, the risk of income loss or even principal loss in investment. The risk taken in order to obtain uncertain expected returns. It is also a kind of operational risk, which usually refers to the uncertainty of the expected rate of return of enterprise investment. As long as risk and return are unified, investment behavior can be effectively supervised.
Investment risk refers to the uncertainty of future investment income, the risk of income loss or even principal loss in investment. For example, stocks may be locked up, bonds may not be able to repay the principal and interest on time, and real estate may fall. These are all investment risks. Investors need to choose financial instruments according to their investment objectives and risk preferences. For example, diversification is an effective and scientific method to control risks, and it is also the most common investment method. Allocating investment in a proper proportion among various investment tools such as bonds, stocks and cash can reduce risks on the one hand and improve returns on the other. Because diversification and asset allocation involve a variety of investment industries and financial instruments, wealth billionaires suggest that investors should consult financial planners before making diversified high-quality investments.
Investment risk is the performance of risk phenomenon in the investment process. Specifically, investment risk refers to the deviation between actual investment income and expected income due to uncontrollable or random factors from making investment decisions to the end of investment period. The deviation between the actual investment income and the expected income may be that the former is higher than the latter and the former is lower than the latter. In other words, there are both the possibility of economic loss and the possibility of gaining additional income, which are all manifestations of investment risk.
Investment is always accompanied by risks. There are different risks in different stages of investment, and investment risks will change with the progress of investment activities. The nature and consequences of risks in different stages of investment are also different. Investment risk generally has the characteristics of poor predictability, poor compensation, long risk existence period, great loss and influence, great risk difference among different projects, and coexistence and cross-combination of various risk factors.