Minimizing the Risk
Investment goes along with risk/return. It is important to manage investment and return rightly. When a person invests, he/she makes choices about what to do with his/her financial assets. Risk is any uncertainty with respect to investments that have potential to negatively affect financial welfare.
One of the major impediments of our capital market is that our retail investors are not aware of the risks associated with their investment. If the investors are not aware of the risks, they often involve themselves with risky speculations and rumor-based decision making. As a result, not only the retail investors incur huge losses, but it also damages the basic structure of the market, because our market is still dominated by the retail investors. So, to retain them as well as to increase their participation, both financial education and financial inclusion are required.