Sunday, 17 August 2014

The perception of risk - risk-on versus risk-off

People often talk about risk free return.
There is no risk free return. There is always a risk not to receive the initial investment - it is called risk-off risk - the risk not to receive the principal.
Investors looking for a high divident payout, risk-on strategy, should always think of the downside risk of not receiving in full the principal, risk-off.

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