Why we wouldn't avoid investment risk even if we could

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That's the thing about risk, explains Andy Brown, investment director at Prudential's Portfolio Management Group, we spend our lives trying to avoid it little knowing that, without it, we can expect to gain almost nothing.

Over the past two years, the very mention of the word “risk” has been sending shivers down the spine of many the investor or IFA. Indeed, when talking about the concept, it is most likely to be discussed in terms of how to avoid it or, if you are feeling daring, its total elimination. Yet, is it ever possible to totally avoid risk? And is it actually a good idea to seek a total risk free portfolio? While no one would recommend a kamikaze approach to your finances, one thing that strikes me is that it is not possible to achieve returns without it. Indeed, I would go so far as to say that ...

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