How to Mitigate the Risk?
How to Mitigate the Risk?
- Asset Allocation: This is a strategy through which an investor can mitigate risk by diversifying their investments into various companies and asset classes.
- Diversification: By investing in different asset classes, such as stocks, bonds, and commodities, investors can reduce their exposure to any one particular type of investment, thereby minimizing risk.
- Risk Management: Investors can also mitigate risk by setting clear investment goals, assessing their risk tolerance, and regularly reviewing and rebalancing their investment portfolios.