3 Investments That Are Riskier Than You Think

EM bonds, country tracker funds and small caps can yield extra returns. But investors must know how to handle them.

Marco Caprotti 30 August, 2021 | 11:04
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Falling stock chart

What is risk? In the world of investments, there are different definitions of this element depending on the instrument you are dealing with and your personal propensity to deal with it. To use a general definition, it can be said that, when investing, risk is the possibility that the return is worse than expected, leading to the loss, in part or in whole, of the value of the investment.

Making a list of assets considered risky is just as difficult as defining risk itself. However, there are some instruments that are increasingly entering investors' portfolios that carry risks that perhaps not everyone is aware of, cryptocurrencies and so-called meme stocks are some of the most popular risky assets of the moment. In this article, we look at three more mainstream types of investment that might carry more risk than you realized:

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Marco Caprotti

Marco Caprotti  è Giornalista di Morningstar in Italia.

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