Saving and investing basicsStep 1 of 6
Risk and diversification
How risk and return are linked, how bonds differ from shares, "not putting all your eggs in one basket", and the investment horizon.
All your eggs in one basket
You carry 30 eggs home from the bazaar in one basket, drop it on the way — and they all break. Had you split them across three baskets, most would survive even if one fell. Investing works the same way: it's called diversification — spreading the risk.
True or false?
«An investment that promises a high return usually has low risk.»
This lesson explains general concepts and is not personal investment advice. Before any specific decision, make sure you understand the risks and consult a licensed institution.