When you invest, you hope that your money will generate an income for you or that it will grow in value and allow you to realise a profit in the future. However, there is a possibility that your desired investing outcome may not materialise; you could instead receive an unfavourable result.

While you happily envision what you stand to gain, before you commit your funds to an investment you also need to consider what you could lose if you were to make the wrong decisions. It’s critical to assess how any adverse outcomes could harm your financial position and negatively affect your goals.

When you put your money to work for you, one of the possibilities is that you could lose some or all of your money if the venture fails. There is also the risk that your investment may not perform as planned, or that you may not get the kind of returns within the time frame that you had anticipated.

Although risk is an inherent part of the investing process, you can still seek to minimise or prevent some of these negative occurrences. Let’s look at some of the strategies that can help you to protect your investments from the risks of loss and unmet objectives. Continue reading Protecting Your Investments →