When it comes to investing, the level of risk you are willing and able to take has a big affect on your investment choices especially when it comes to an investment in shares or mutual funds.
First lets look at shares.
When you own shares you are directly owning a small part of a company.
Let’s take supermarket chain Tesco for example. If you buy shares in Tesco, you own a tiny part of Tesco! They will pay you a proportion of their profits each year (called a dividend) and if Tesco shares are in high demand the share price will go up and if lots of people want to sell their shares then the share price will go down. … Continue Reading