Investments That Are Riskier Than You Think

Emerging market bonds, small-cap stocks, and country track funds can boost returns - but investors must know how to handle them

Marco Caprotti 8 October, 2021 | 9:13AM
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What is risk? In the world of investments, there are different definitions of this element depending on the instrument you are dealing with and your personal propensity to deal with it. To use a general definition, it can be said that, when investing, risk is the possibility that the return is worse than expected, leading to the loss, in part or in whole, of the value of the investment.

Making a list of assets considered risky is just as difficult as defining risk itself. However, there are some instruments that are increasingly entering investors' portfolios that carry risks that perhaps not everyone is aware of, cryptocurrencies and so-called meme stocks are some of the most popular risky assets of the moments. In this article, we look at three more mainstream types of investment that might carry more risk than you realized:

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Marco Caprotti

Marco Caprotti  è Giornalista di Morningstar in Italia.