RISK

Every investment inherently has its own risk

investment itself. Some of the risk are appa

Fixed Deposits – Inherent Rate Risk

The simplest form of investment is ban
When inherent rates are high, it will be wise
liquidity risk but premature redemption of F
all.
Stock Market – Systematic Market Risk
Stock Market – Systematic Market Risk
Stock market requires certain knowledge es
major financial crisis in other countries will
risk, economic risk, liquidity risk and sentim
but the ability to exit is also important.

Unit Trust Investment – Degree of Risk Var

The risk of unit trust investment depe
equity fund or a bond fund or mixed assets
guaranteed/protected fund, where a portio
of future index which provide leverage to en

Bond Market – Interest Rate Risk and Dura

of future index which provide leverage to en

Bond Market – Interest Rate Risk and Dura

On top of credit risk which is related t
affected by interest rate changes and durati
usually offers higher return. The risk of inve
whenever interest rate changes.

Foreign Share – Currency Risk

If our currency strengthens, then the
always better to invest in a country where t
Hedge Funds – A New Asset Class
Hedge funds are generally perceived a
Hedge Funds – A New Asset Class
Hedge funds are generally perceived a
in their disclosures. The strategies and prod
than traditional class of investment. The ris
and what investment approach is employed
 SK INHERENT OF INVESTMENT

risk. The risk of an investment is related to the

parent while others are not so obvious, until

bank fixed deposits (FD).

wiser to put the FD for longer-term maturity. F
of FD may subject to penalty on interest or no
 especially investment in non-blue chips. With
will also affect our market. The market is also s
timent risk. Buying a good stock in good timin

Varies
epends on the structure/nature of the fund, w
ets fund (a mixture of equity and bond). Anoth
tion of the fund locked in bonds and the bala
o enhance return.

uration
o enhance return.

uration
d to risk of default of interest or principal pay
ation to maturity. A bond with longer maturit
nvesting in higher duration bond is the higher

he ultimate return of the foreign investment w

e the currency is firm.

d as high-risk investment due to the leverage

d as high-risk investment due to the leverage
oducts used in their investment are also muc
risk of investing in a hedge fund depends very
yed.
the characteristics of
til something happens.

y. FD may not have the

no interest to be paid at
With financial globalization,
o susceptible to political
ming provides a good start,

, whether it is a pure
other type of fund is capital
alanced invested in options
payment, bond price is
urity period of duration
er price fluctuation

nt will be lower. Hence, t is

ge and lack of transparency

ge and lack of transparency
uch more sophisticated
ery much on how it invests