Investing in growth companies will help keep pace with inflation. Remember, to diversify and don t just invest in growth companies. But because the risk is low, the return of your investment is also lower. Your original investment requires capital. Depending on the type of investment you select your capital may be at risk.
Diversification helps reduce capital risk.
If you are investing over a long time period, your have a higher risk tolerance than if you are looking at a short term investment. Remember, the longer your time horizon the more you can tolerate risk. National Council on Teacher Retirment. Use with permission only.