Risk and reward

Introduction| Course| Q&As | Recommended reading| Quiz |

Introduction

Context

Many investors fail to appreciate that investing, like motor racing, is an activity that can be done with safety as the main priority, or performance. If you prioritise safety, don't always expect exhilarating performance. If you prioritise performance, be prepared for the odd crash. And then there's somewhere in between. The purpose of this tutorial is to show how you can adapt your investing strategy to choose a point on the spectrum that suits you.

Prior knowledge required

None. The tutorial is designed for beginners.

Contents

1. The right place for your spare money?
2. The golden rule
3. Stock market performance and inflation
4. Stock market performance compared to savings accounts
5. Specific risk
6. Market risk
7. Pound cost averaging - a way round risk
8. Overseas investments - currency risks
9. Conclusion

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