All investments carry some level of risk, but risk can be managed — not eliminated.
Ways to manage risk include:
- Diversifying across asset classes
- Avoiding concentration in a single investment
- Aligning investments to your timeframe
- Maintaining appropriate defensive assets
- Reviewing and rebalancing regularly
Importantly, risk should be considered in the context of your goals. Being too conservative can also carry risk — particularly if inflation erodes long-term purchasing power.
A balanced strategy seeks to manage volatility while still supporting growth over time.
