In investing, there is typically a trade-off between risk and returns. Investments that have higher potential returns, such as shares, also have higher potential risk and volatility – which means their value can fluctuate significantly over the short term.
If you’re seeking higher long-term returns, you need to be willing to accept more risk and volatility. If you’re seeking lower risk and volatility, you need to be willing to accept potential lower returns.
It’s important to assess your tolerance for risk before deciding what to invest in.