How Can A Profit-Guaranteed Investment Be Risky? Investment Risk Explained

This guest post was written by Ching, the founder of iMoney.my, a price comparison website for Malaysians. Ching is a CFA charterholder, and was formerly an investment consultant and wealth advisor.

Investment professionals love complicating things.

Trust me on that. I was once like that.

You dont believe me?

The next time you meet people from the investment industry, try asking them to give you a definition of the word risk.

Investopedia defines risk as the chance that aninvestments actualreturnwill bedifferentment.eturn of a specific investment.eturn of a specific investment.eturn of a specific investment.eturn of a specific investment.

Dont get me wrong.This is actually a pretty good definition of riskthat is if you speak finance.

But most people dont,and if you are like most people,... [via Kclau]