Investment risk is an inherent part of investing, and it is important for investors to have a clear understanding of it. Risk refers to the potential for loss or volatility in the value of an investment. Different types of investments pose different levels of risk, and it is crucial for investors to assess their risk tolerance and investment objectives before making any investment decisions.

One of the key factors influencing investment risk is the level of diversification in a portfolio. Diversification involves spreading investments across different asset classes, sectors, and geographic regions. By diversifying their portfolio, investors can reduce the impact of any single investment's poor performance on the overall portfolio. This helps to mitigate the risk associated with investing.

Another aspect of investment risk is market volatility. Financial markets can be unpredictable, and prices of assets can fluctuate rapidly. Changes in market conditions can result in significant gains or losses. Therefore, investors need to be prepared for potential fluctuations in their investments and should have a long-term perspective when it comes to investing.