🤚 It's important to note that when you invest your capital, or in other words the funds that you use to purchase company shares, is at risk 🛑
While the value of your shares may increase overtime, they could equally decrease and you may get back less than you originally invested, or receive less than you expected. This is dependent on the performance of the company shares you purchased on the stock market, as well as a number of other factors.

These factors can be broadly divided into the following categories:

Systemic risks

Systemic risks are events which affect all or almost all types of investments. One example of such an event is the 2008 global financial crisis, which caused many investments to decrease in value in a short period of time.

Non-systemic risks

Non-systemic risks are events which affect one particular company, or a segment of the market. An example of this could be a new competitor entering the market and creating competition for existing companies in the same sector, or a product recall causing consumers to lose trust in a particular company on the market.

Exchange rate risk

Exchange rate risk is the possibility that an investment you make in a foreign currency drops in value due to the currency value decreasing.

Inflation Risk

It's possible that the value of your investment does not keep up with the rising inflation, and therefore the returns you receive on your investment will be undermined.

Social, political and legislative risk

It's also possible that the value of your investment could be impacted by legislative, political or social changes or instability in the jurisdiction you are investing in.

💡 It's important to consider these risk as well your current financial circumstances and wellbeing, and seek independent, professional advice if needed.

If you have any further questions, reach out to us here ✍️
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