Are there any risk-free returns?

There is NO risk free returns in any assets

Proper understanding of risk helps us to generate higher returns with the same amount of risk.

There are mainly two types of risk:

  • Systematic Risk – which exists in our system.
    Like government policy changes, inflation risk, Covid-19 health risk, economy cycles, geo-political cycles, etc.

Systematic risk can be managed by purchasing systematically every month .

  • Unsystematic Risk – it is specific asset class risk.
    Like FD interest rate, real estate liquidity risk, equity volatility risk , Gold currency demand supply risk.

Unsystematic risk can be managed by asset allocation.

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