At LENSELL, we strive to make financial literacy accessible to everyone so that you can make informed investment decisions and grow financially. In our last blog, Diversification 101, we discussed the importance of Portfolio Diversification. This time, we will explore two indicators that will help you understand portfolio performance and see how they can assist in making better informed investment decisions.
Financial markets are always prone to financial risks and there are several factors contributing to it - macroeconomic forces, unprecedented events, disasters, market interest rate, or the possibility of default by sectors or large corporations (Investopedia,2021). Sometimes risks are simply those inherent to business operations in a dynamic economic environment. Basic understanding of these financial risks can help you strategically invest in assets that may generate the expected returns.