Risk management: Guidelines on investing in 2023

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Guidelines on investing in 2023. FILE PHOTO | SHUTTERSTOCK

"No pain, no gain.” How many times have you heard that cliché to describe something you didn’t want to do? Unfortunately, investing carries a certain amount of risk, and with that risk can come some pain, but also some gain.

All investments carry some degree of risk. The rule of thumb is “the higher the risk, the higher the potential return,” but you need to consider an addition to the rule so that it states the relationship more clearly: “the higher the risk, the higher the potential return, and the less likely it will achieve the higher return.”

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Note: The results are not exact but very close to the actual.