Is there any risk involved in investing or does it always pay off in the long run?

Everything has risks. Cash is fraught with risks - inflation and currency fall.

It basically depends on your budget and what you invest in. Extensive indexes are always returned. The Nasdaq fell 76% after 2000, but bounced back, with the German DEX recovering from a similar decline. Even the Japanese Nikkei returned if profits were reinvested.

                                                 Is there any risk involved in investing?

 

In comparison, many individual stocks have gone to zero or never returned.

If you want as little risk as possible you need to:

➤Globally diversified stock indices, such as MSCI World, and not just individual countries. US markets are also global markets because these firms are global.

➤Reinvesting profits and not just relying on capital growth

➤Invest during different time periods. Hence, lump sum and monthly injections. So, you don't have to worry about whether 'now is the best time to invest'.

➤Hold small, medium, and large-cap stocks. Look at the UK market since 2000. The FTSE has performed poorly in terms of capital growth but is fine if dividends are reinvested.

What is the main risk of investing?

➤The FTSE 250 has done better though:

Any risk involved in investing in Pakistan

Also on other assets such as bonds. There are also advanced techniques such as downside protection but these often require an advisor, or you need to be a certified investor.