Top of main content

Risk and reward explained

If you're about to start investing, the most important thing to consider is your attitude to risk. How much money are you willing to risk for a potential reward?

Risk and reward

Among investment products, typically:

  • High-risk investments offer potentially higher returns
  • Low-risk investments offer potentially lower returns

Your attitude to risk

Keeping your goals in mind, have you asked yourself the questions below:

  • Do I have time to make long-term investments, which would allow me to take greater risks for higher returns?
  • Can I afford to lose some of the money I invest in short-term, high-risk investments? Can I manage short-term fluctuations and drops in the value of my holdings by investing for a longer period?
  • What risk level can I take while still protecting my children's future?
  • Am I fine with potentially low returns if it means my money is safer?
  • If I go for safer investments, will the returns be enough to cover inflation?

High risk vs low risk

Everyone has different reasons for saving and often your wealth management goals can be a deciding element in how much risk you're prepared to take with your money.

If you're making a wealth management plan for your children's education, then you might be investing over a long period of time and looking for a high return. As a result, you might prefer a comparatively high-risk investment option.

Should your goal be to purchase a new car, go on holiday or decorate a house, you will be investing for the short term and expecting a guarantee of your investment. Accordingly, you may prefer a low-risk investment option.

Related content

A world of investment opportunities

 
New window

Is investing right for me

 
New window

Getting started as an investor

 
New window

What is a financial review

 
New window

More products and information

Investment

 
New window

Global experts' advice to help you capture global investment opportunities and mitigate investment risks to meet your diversified investment and wealth management needs. Our investment products include: Structured products, Dual Currency Investment and Enhanced Yield Investment, Overseas Investment Plan, and Local Unit Trust and Hong Kong Mutual Recognition of Funds.

Insurance products

 
New window

We take into account your protection needs at various life stages to help you find out suitable insurance plans, leveraging on our ability to offer a one-stop platform for your insurance needs.

You could check our insurance partner policies including Health insurance, and Life insurance, and our Online service.

HSBC Insights

 
New window

In today’s fast-paced financial world, the only way to stay ahead is to be on top of current market events. Tap into our unique market insights and investment analysis to stay informed about the latest trends and regional news with just a few clicks.

Get started

Create your financial plan

 
New window

Start aiming for your goals today by putting together a plan in a few simple steps.

Get personalised advice

  Make an appointment New window

By phone

For general inquiry (RBWM only)

400-820-3090

Please dial the country code of mainland China +86 if you are calling from overseas, Hong Kong SAR, Macau SAR, or Taiwan

Frequently asked questions

What are the basic rules to making investments? 

When should I start financial planning for my future? How should I approach financial planning? 

Where can I get more information about investment products? 

Disclaimer 

Although the above information is carefully written, the Bank does not warrant, state or guarantee the accuracy or completeness of the above information. The above information is not and should not be regarded as an offer or purchase invitation for any financial product, nor should it be viewed as an investment proposal.