Investment risk is basically the possibility of losing part of or all the capital you invested.
The outcome of your investment is affected by many factors. Unexpected events may occur in the markets (geopolitical, economical) or in large companies whose performance impacts the sectors of the capital markets.
Any such event that disrupts the economy may cause fluctuations in the value of your investment and that is the risk that you are asked to take.
Investments should have a time horizon of at least 5 years. The longer you can commit your money, the more flexible you can be to a potential market turmoil as you give your investments time to recover.
Investment risk and return are inextricably linked. There is no risk-free return on investment. The lower the risk you take, the lower the potential returns and vice versa.
Finding the balance between the highest possible return and the lowest possible risk will depend on your appetite for risk and the duration of your investment.
At Pancreta Bank we can help you with personalized advice without the obligation of placing available funds from your part. Visit one of our branches that offer the Wealth Management Service to speak with our specialized staff.
UCITS DO NOT HAVE A GUARANTEED RETURN AND PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS.