Rumours are that investing is for the gambler. For someone who is willing to take a substantial hit for the small possibility of a high reward. To risk everything to an extreme level, whatever their investment size. In this blog, we look to dispel this myth by exploring how a small element of risk can actually be a benefit to investing.

Rumours are that investing is for the gambler. For someone who is willing to take a substantial hit for the small possibility of a high reward. To risk everything to an extreme level, whatever their investment size. In this blog, we look to dispel this myth by exploring how a small element of risk can actually be a benefit to investing.

In gambling, the goal is for others to lose money to achieve a winner. With investing, money is used for growth, no-one needs to lose to earn money. Not only that, but investing in the broad market over the years has shown to have pretty good odds.  

Of course, we are not saying that investing is completely risk free, there is always an element of it. But it does not always have to be extreme. It is relative. There’s always a risk of the market falling, and assets dropping. The market always goes up and down, but these troughs don’t always mean doom. If you don’t sell in these down moments, history has proven that the market will bounce back and most probably hit an average return.

Considering inflation, the alternative to not investing could actually be a lot risker. Most savings accounts earn interest at less than the rate of inflation, which means if you think just sticking your money under your mattress is a better option, you may be losing money over time.

Risk is why you see warnings like “you may not get back what you invest” and “the value of investments can go down as well as up”, when looking into funds, stocks, and investment product literature, however there are many levels of risk. So instead of dismissing investing as too much of a dangerous game, why not explore how risk works.

Understanding risk and its impact on your investment could help further dispel the myth that investing is for gamblers. Not only that, but it could also allow you to make an educated decision about what is right for your financial goals. Whatever your risk appetite, there is likely to be an investment suitable for you.

At i-stock, we cater for a range of risk appetites. Those who are not comfortable taking – as they perhaps view it – unnecessary gambles with their investments, are able to access our Protection Portfolio. With this option, potential investors can protect a significant amount of their initial investment, as well as a substantial amount of any potential future profits. This is done through Protected Investing; tracking the growth of the portfolio and locking in 90% of any growth each time the portfolio reaches a new high; therefore, ensuring you always get back at least 90% of the portfolios highest ever value.

This option allows an investment’s value to fluctuate very little, making the journey much smoother over time.

Our various other available investment products cater for a variety of risk appetites and can be explored in more detail on our website.

The options available show that investing doesn’t have to be too risky for anyone willing to accept the bumps in the road; it is these bumps that may bring the investment returns.