Types of Investment Risks

The investment risks vary from investments to investments. There are capital risk, currency risk, liquidity risk, financial risk and market risk in case of investments. In capital risk, you have the risk that you will lose the money you have invested. In currency risk, your assets are affected if they are held in a different currency. So, the currency movement may affect the value of your investment. Those assets which don’t sell easily in the market give rise to liquidity risk.