Risk is an inherent part of investing. In order to get a reasonable return on an investment, risk has to be present.
Changing the riskiness of your portfolio will mean that it will become stocked with a different blend of investments.
For instance, a move up the risk scale will provide exposure to riskier assets, such as equities, that will provide high return potential. The performance of these riskier investments may be volatile and you must be willing to accept large, and sometimes dramatic, falls in value to achieve higher returns in the long run.
Equally, if you opt to become a more cautious investor, your portfolio will be populated with a greater number of conservative investments like bonds that deliver lower but more guaranteed returns.
There is no right or wrong answer when it comes to risk; it is just a personal preference. Although you should always factor in your own circumstances when considering risk; for instance, your age and proportion of your wealth that you intend to invest. As an example, when you get older you might want to have a more risk-averse portfolio to minimise your investment risk.
If you want to find out more about your risks, please read our risk disclosure statement.