The Risks of Investing

All types of investments have risks, whether you're investing in stock funds, bond funds, or even money market funds. Stock funds * Market risk: One of the most significant risks you face is the volatility of the market. Stock prices overall can decline—sometimes dramatically—over short or even long periods. You can reduce market risk by holding stock investments for a long time—at least ten years. * Investment style risk: Returns from the types of stocks a fund invests in—such as growt...
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