Investing is not without risk. Anyone who suggests otherwise is misguided. The idea of taking risk is to increase returns. But how much risk should you take, what is the extra return you might get, what if it goes wrong? Understanding this is one of the most important foundations of investing and financial planning.
North American equities have had significant growth with the average Investment Association North America sector fund delivering over 100% return. Investors may become over reliant on just this sector or disregard their normal portfolio balance and investment more heavily in North American equities.