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? asked in Business & FinanceInvesting · 2 years ago

Name and explain (2-3) ways of reducing investment risk.?

1 Answer

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  • 2 years ago

    (1) Diversification

    Make different types on investments. (Stocks, Bonds, Savings, Real Estate, Precious Metals, Collectables)

    Within any one type of investment, diversify. For example buy a mutual fun or ETF instead of one or two stocks.

    (2) Choose at least some safer investments such as stocks instead of derivatives, bonds instead of stocks, government insured bonds or savings accounts instead of commercial bonds.

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