Typically, the longer your investment horizon is, the more aggressive you can be with your investments (depending on the products, programs and strategies you are considering). However, the investment horizon is the investors decision and should support his/her appetite for risk. Saving for a pension might be a higher risk investment, knowing the money will not be needed for many years and that there is plenty of time for short-term losses. Your risk appetite is likely to change with time, and you may become more cautious the closer you get to retirement or achieving your other goals in life.

Risks vary according to the different ways available for you to invest. Backing companies such as start-ups via a private placement as a shareholder can deliver huge rewards, but it can be very risky because if a company runs into regulatory issues, run out of financing or is subject to bad management, your investments will plummet in value.

Diversifying your investments into different programs in different asset classes such as FX, digital currency and funds/ETFs, or other mixed investment instruments, is one way of spreading your risk as fund managers choose the investments in a diversified portfolio within the asset class and invest it on your behalf. If one placement/investment falters, it’s not as disastrous if the others are performing well.