The Reserve Bank has published an excellent guide to risk for savers and investors called “Upside, Downside”. It gives good practical examples of many of the common situations and effects that come from different types of investing. One of its most important themes is that taking on risk can be a good thing, particular for long term investors, or as Terence said in 150BC “Fortune favours the brave”. If you want a good background read to investing, this is a great place to start. Let us know if you have any questions regarding this publication or your investment once you have read the articles. The guide can be found at http://www.rbnz.govt.nz/publications/upsidedownside.pdf.