Relationship between risk and return

There is a common, and often correct, theory that risk and return go hand in hand – that the higher the risk, the higher the expected return and also the higher the potential loss.

Also, be cautious about investments with unusually high returns – it might just be a scam or a very risky investment that may result in you losing all or a large part of your money.

If you are concerned, ask your financial adviser or contact the Australian Securities and Investment Commission.