Financial insights

Risk, Return, and Diversification — Three Pillars Every Investor Must Understand Before Investing

Why high returns always come with high risk, the three main types of risk you need to know, and how diversification helps reduce risk without sacrificing expected returns. There's a classic saying in the market: "There's no such thing as a free lunch." If someone promises you 20% annual returns that are "absolutely safe, guaranteed no loss," you're not looking at an opportunity — you're looking at a trap.