Like any investment, Choiceplus carries its own level of investment and market risk. When choosing to invest, you should be aware of the risks involved and be comfortable with the strategy you’re putting in place. Here are a few considerations for you to think through before investing in Choiceplus:
- Level of diversification (concentration risk). Diversification means spreading your investments across different types of assets. By pooling your money into one type of investment, you could suffer from concentration risk – that is the risk of having your money tied up in too few assets as opposed to spreading it across a range of investment types.
- Short-term price volatility (volatility risk). This refers to uncertainty about the size and frequency of changes in the value of your investments.
- The consequences of trading too often (frequency risk). When you buy and sell shares, each trade incurs – at the very least – a brokerage fee. If you are continually buying and selling your shares, think about the costs involved and whether you are investing or speculating and if this is the right strategy for you.
- Investing based upon your feelings (emotional risk). Chasing the market and emotionally buying or selling shares may not assist you in achieving your long-term financial and investment goals. If you are continually concerned or wanting to change your mind then perhaps reconsider.