Managing investment risk

Investing is ultimately about making money. To be successful and earn significant returns, investors need to understand the risks they are taking, and what they can do to manage them.

Investing and risk

It’s important to understand investing does not offer “free lunch”. Some risk is normal and should be accepted with all kinds of investing – not just investing in Notes. For example, the value of the investment may decline due to events outside the control of market participants, such as an economic downturn, a financial crisis, or geopolitical events.

Understanding different types of risk and following a few simple tips can already take you a long way toward becoming a successful investor. Investing smartly can be learned. Remember risk tolerance is individual – only you can decide what you’re comfortable with.

When you invest on LMA, we offer several tools to help you. Let’s take a look at the risks you face on LMA, and how you can manage them. However, managing risk does not exclude the possibility to lose part or all of the invested funds if some of the risks materialize.