Risk, volatility, and loss
Learn why a listed investment can fall, become hard to sell, or behave differently from a smooth return illustration.
Price risk
A share price can rise or fall and the company can perform differently from expectations. Past performance and a familiar brand do not remove this risk.
Liquidity and execution risk
A share can be difficult to buy or sell at the price you expect. Wider spreads, limited orders, and fast moves can change execution.
Portfolio and behaviour
Concentration, repeated reactive trading, borrowed money, and ignoring your time horizon can increase the harm of a market move.
A calculator showing steady annual growth is an illustration. Real markets move unevenly and can finish below your contributions.
Three things to keep.
- 01Loss of principal is possible
- 02Liquidity affects execution
- 03A plan still needs risk limits
Does investing every month remove market risk?
Show the answer +
No. It changes the timing pattern, but the investments can still lose value and may not suit your needs or horizon.