DECODING CAPITAL RISK IN INVESTMENTS

Capital risk is the risk of losing the initial investment in a particular asset or security.

Investors can manage capital risk by diversifying their portfolio across different asset classes and sectors.

Investors should also consider the liquidity of their investments and the potential for market volatility.

Understanding the risk-return tradeoff is crucial in making informed investment decisions.

Investors should also consider their investment goals and risk tolerance when making investment decisions.

Investing in mutual funds and exchange-traded funds (ETFs) can be a good way to manage capital risk.

Regularly reviewing and rebalancing your investment portfolio can help manage capital risk over time.