TO build wealth over time, an investor needs to accept a certain degree of risk. By taking on very little risk, and keeping the bulk of your wealth in a savings account, you will lose purchasing power over time. As such you are already subject to inflation risk.
The key to managing risk is to first understand the different types of risks associated with various investments. Secondly, it is important to balance your exposure based on your personal level of risk tolerance, financial objectives and expected returns.
Published on Jamaica Observer.
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