If you aren’t near retirement age, you may choose more aggressive investment options that require a longer investment timeframe. But if you’re closer to retirement, a more conservative investment approach may be best to protect your money in the short-term.
All investments present some level of risk, with the potential to deliver poor or negative returns at times. Generally investments with the highest risk can deliver the greatest returns (and losses), while lower risk investments tend to deliver lower returns.
Investments in cash and fixed income are considered more conservative (or defensive) and lower in risk. They typically provide regular income with little, if any, capital growth.
Investments in property and shares are considered growth assets (or aggressive) and higher in risk. They typically provide capital growth, some income and the potential to produce higher returns over time.