Taking risk can give you better return
Making the most out of future stock market investments involves capturing the "risk premium" offered by more volatile stocks. You should consider the mutual funds that invest in them.
The term "risk premium" describes the extra rate of return that the "invisible hand" of economic forces will offer to investors who can handle more sleepless nights as markets crater.
Someone investing entirely in small companies, for instance, can expect to earn 12 percent per year over 30 years as opposed to just 10 percent per year as the average long-term return for the S&P 500.
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