Take a few minutes to study the Investment Pyramid below. Begin your financial program on Level 1 and build up. By building from the bottom up, you can design a diversified portfolio that includes financial growth and protection. Risk is the possibility of suffering harm or loss. It involves uncertain danger.
All investments carry risk.
Level 1 products carry the least amount of risk. Level 4 carries the highest risk. While all investment products involve risk, not all types of risk are the same. Market risk is the risk of losing your principal due to market volatility. Inflation risk measures the effect of continually rising prices on your investment.