Josephine Norton
When it comes to investing, your comfort level is called your risk tolerance. This is how much risk you're willing to take, and it can vary throughout your lifetime. For example, when you're younger, you may be more willing to take risks as you have more time to recoup losses. As you get older, you may decide you're not comfortable with certain types of investments anymore. It's important to remember that investing involves risk and the value of your investment will fluctuate over time. You must make your own determination whether an investment is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security.
| Characteristics | Values |
|---|---|
| Definition | Risk tolerance is how much risk you are willing to take when investing. |
| Fluctuations | The value of your investment will fluctuate over time, and you may gain or lose money. |
| Age | When you are younger, you have more time to recoup losses, so you may be more comfortable with risk. As you get older, you may decide you are not comfortable with certain types of investments anymore. |
| Investment type | You can lower the risk in your portfolio by choosing investments that are less risky. |
| Bonds | The bond market is generally volatile, and fixed-income securities carry interest rate risk, inflation risk, and credit and default risks. |
What You'll Learn
- Risk tolerance is how much risk you're willing to take
- Risk tolerance can vary throughout your lifetime
- The value of your investment will fluctuate over time
- You must make your own determination of whether an investment is consistent with your risk tolerance
- The bond market is volatile, and fixed-income securities carry interest rate risk
Risk tolerance is how much risk you're willing to take
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security. Fidelity is not recommending or endorsing this investment by making it available to its customers.
To learn about risk tolerance, you can read Viewpoints on Fidelity.com: 3 keys to choosing investments. If you're tempted to get out of the market when it's down, consider these tips to deal with risk in your investment mix and stick with your plan for the long term.
Remember that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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Risk tolerance can vary throughout your lifetime
It's important to remember that investing involves risk and the value of your investment will fluctuate over time. You may gain or lose money. When considering investments in bond funds, for example, it's good to know that the bond market is generally volatile, and fixed-income securities carry interest rate risk, inflation risk, and credit and default risks.
Ultimately, you must determine whether an investment is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered as such.
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The value of your investment will fluctuate over time
Your comfort level with this risk is called your risk tolerance. This can vary throughout your lifetime. For example, when you're younger, you may be more comfortable taking risks because you have more time to recoup losses. As you get older, you might decide that you're not comfortable with certain types of investments anymore and choose to lower the risk in your portfolio.
It's important to consider your risk tolerance when investing in bond funds, as the bond market is generally volatile. Fixed-income securities carry interest rate risk, inflation risk, and credit and default risks for both issuers and counterparties.
Ultimately, it's up to you to determine whether an investment is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered as such.
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You must make your own determination of whether an investment is consistent with your risk tolerance
Your risk tolerance is your comfort level with risk. It's how much risk you're willing to take, and it can vary throughout your lifetime. When you're younger, you have more time to recoup losses if an investment has a bad year. As you get older, you might decide that you're not comfortable with certain types of investments anymore. So you can lower the risk in your portfolio by choosing investments that are less risky.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. As with all your investments through Fidelity, you must make your own determination of whether an investment is consistent with your risk tolerance, investment objectives, financial situation, and evaluation of the security.
To learn about risk tolerance, you can read Viewpoints on Fidelity.com: 3 keys to choosing investments. If you're tempted to get out of the market when it's down, consider these tips to deal with risk in your investment mix and stick with your plan for the long term.
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The bond market is volatile, and fixed-income securities carry interest rate risk
Risk tolerance is how much risk you are willing to take with your investments. This can vary throughout your lifetime. When you are younger, you may be more willing to take risks as you have more time to recoup losses. As you get older, you may decide that you are not comfortable with certain types of investments anymore.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. You must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security.
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Frequently asked questions
Risk tolerance is your comfort level with risk. It's how much risk you're willing to take, and it can change throughout your lifetime. When you're younger, you may be more willing to take risks as you have time to recoup losses, but as you get older, you may prefer less risky investments.
Your risk tolerance is determined by your investment objectives, financial situation, and evaluation of the security. You must consider if an investment is consistent with these factors.
Investing with Fidelity, or any other company, involves the risk of losing money. The value of your investment will fluctuate over time, and you may gain or lose money.
You can lower the risk in your portfolio by choosing investments that are less risky. For example, you can consider the tips provided in Viewpoints on Fidelity.com to deal with risk and stick with your investment plan for the long term.
The bond market is generally volatile, and fixed-income securities carry interest rate risk, inflation risk, and credit and default risks. Holding them until maturity to avoid losses caused by price volatility is usually not possible, as most bond funds do not have a maturity date.
