What Affects the Level of Risk in Investments?

Businessman Eitan Eldar explains that in case we want that certain investment will be successful, we have to take a certain level of risk. Usually, when the risk level is high, there is a higher chance earn. But what affects the risk in the investment sector?

There are several factors that affect the risk level in investments. One of them is the level of trade in stocks in a portfolio. Eitan Eldar says that usually, high level of trade will lead to a higher risk level. Just because of the greatest risk, many investment portfolios include bonds (A way of reducing the level of risk) and high investment diversification, which further reduces the risk. Solid investments can have foreign currency certificates of deposit, government bonds, and more.

Investment in mutual funds, stocks, options and exchange traded notes are high-risk. So should dispel them right between Israeli shares, the shares of developing countries and developed countries.

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