It is certainly not recommended to invest all your money in one investment product. We definitely recommend diversified investing. Spreading your investments ensures a more stable development of the value of your investments. As a result, you have less to deal with large outliers in both a fall and a rise in the stock market. Even if the result of one investment is disappointing, this can possibly be compensated by another investment. Diversified investing is without a doubt one of the most important ways to limit investment risks.

In addition to investing diversified, it is also very wise to regularly invest your money in parts. You can easily do this by, for example, consistently depositing a certain amount every month. By regularly investing your money in parts, you reduce the risk of investing your money at the wrong time. By investing an amount each time, you simply lower your purchase price, which significantly reduces the chance of possible losses.

These are a number of general points that could each contribute to minimizing the risk involved in investing. Unfortunately, by carefully applying the above points, the risk cannot be completely avoided, but fortunately it can be minimized.

You now know that investing without risk is impossible. Investing always involves risks, but those risks can easily be minimized. Even for people who are extremely risk averse, investing can continue. However, it is important that you map out your risk appetite, that you invest in a diversified manner and that you invest regularly, that you adopt a long-term vision and that you keep your personal and financial situation up to date.

*On the basis of this article, we do not encourage anyone to start investing. This article is not written for advisory purposes and is not intended as any form of expert (financial, tax or legal) advice. This article is purely for conveying knowledge and information. Thriven is therefore not liable for the correctness or completeness of the articles.