Risk and reward: the trade-off explained

HowToInvest Editorial

In investing, risk and potential reward tend to go hand in hand. Assets that can grow the most usually swing the most along the way.

The trade-off

Growth assets like global equities have historically grown more over long periods, but with bigger ups and downs. Steadier classes grow less but move more gently.

Finding your balance

There is no single right answer — only the balance that fits your time horizon and how comfortable you are with swings.