Mutual Fund Education Alliance - Investing Basics - Learning Topics - Assessing Risk
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Inflation Risk

What does inflation have to do with the amount of investment risk you’re willing to assume? You need to consider the risk that being too conservative in your investment style could have over the long term if your investments don’t outpace, or at least keep up with, inflation. Therefore, you may want to consider taking on a little more risk to avoid the risk of inflation.

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