Risk is a measure of short-term volatility. If an investment is very predictable in the short term, such as bank deposits, it is said to be of lower risk. If an investment has a greater potential to fluctuate over the short-term, such as shares, it is said to be of higher risk. Historically higher risk investments tend to have higher returns over the longer term.
The longer your investment horizon, the greater the opportunity to smooth out the highs and lows of short term price fluctuations and achieve attractive returns. The diagram below demonstrates the relationship between time horizon, risk and return.
Source: S&P's Fund Services, 31 December 1984 - 30 June, 2005
This investment chart is for illustration purposes only. The past performance figures shown are not indicative of future performance.
Flexible financial planning can help you achieve your financial protection, wealth and retirement goals throughout different stages of your life. AXA's 5 steps financial planning process helps you design a plan that best meets your personal needs. We are happy to provide consultation service to you free of charge and your personal information will be kept confidential.
Life insurance plans are offered by AXA China Region Insurance Company Limited and AXA China Region Insurance Company (Bermuda) Limited while investment-linked plans are offered by AXA China Region Insurance Company (Bermuda) Limited. Mandatory provident fund products are available through AXA China Region Insurance Company Limited while our occupational retirement scheme product is available from AXA China Region (Bermuda) Limited. Investment advisory and asset management services are being offered by and are available through AXA China Region Investment Services Limited.
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For references only, you should select your investment portfolio according to your personal situations.
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The facts and opinions are for general information only and should not be construed as investment advice nor intended to be an invitation to invest. We will not be responsible for any direct or incidental loss incurred by applying any of the information herein.
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Each investment is subject to market and exchange rates fluctuation and to risks inherent in all investments. The prices of investments or units of any investment fund may go down as well as up. For further details, please refer to the principal brochure or offering document of the relevant insurance, retirement or investment products.
