If you’ve got a sufficient amount of money in your cash savings account – enough to cover you for between three to six months in the event of an emergency or unexpected expenditure – and you want to see your money grow over the long term, then you should consider investing some of it.
An important part of the investment decision process
There’s no single answer to the question of how much investment risk you should take on. It depends on your individual circumstances, goals and comfort level with risk. Some people are more comfortable with risk than others. Some people are willing to take on more risk in order to achieve their goals. And some people have different tolerance for different types of risk.
Minimise your risk and maximise your potential return
Investment asset allocation is important because it can help you to reach your financial goals. By diversifying your investments across different asset classes, you can minimise your risk and maximise your potential return.
Investors should keep things in perspective and not overreact to headlines. Although equities may fall more in the near term, historically market drawdowns due to past military conflicts did not last very long and were mostly buying opportunities.
