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How can I reduce my risk?

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Updated on:
November 2, 2021

Investing always carries risk; often, the greater the risk, the greater the reward – but also the greater potential losses. So, let’s cover some quick tips for minimising risk!

  1. Know your risk tolerance: Invest in stocks that create a blend of risk you’re comfortable with. You can check out every Theme’s risk level by their chili rating.
  2. Due diligence: Invest in sectors and companies you know, use, and understand – or do your research first!
  3. Invest what you can afford to lose: know your budget and don’t invest beyond your means.
  4. Diversify! Invest across a range of Themes, shares, sectors and asset types to mitigate your loss if one sector or company faces a crash.
  5. Pound cost averaging: buy frequently in small batches instead of trying to time the market.
  6. Hold your investments for the long term

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