1. Investors
  2. Deciding how to invest
  3. Understanding risk

Understanding risk

Risk isn’t bad; it’s a normal part of investing. It’s the chance you take you won’t get the return you expected, or that you might lose some or all of the money you invested. Risk can also improve your chances of getting a good return. Having a clear understanding of your own goals and attitude to risk will help you work out how much risk to take.

How to check the likely risk of an investment

Most investments have a PDS explaining the general and specific risks of a financial product. This might include risks related to the industry a company is in, or the markets it operates in. See types of risk.

The PDS also:

To learn more, see Product Disclosure Statements.

Types of risk

How to manage risk