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For example, if you invest in the infrastructure company, the chances are that the stock may perform very well in the initial few weeks after you invest.However, depending on the world dynamics, oil and gas prices and transportation costs, the share price may go down. So, it is a risk that you are taking when you are investing. There is no industry in the world which has standard performance.
However, you can spread your risks by planning your portfolio carefully. Some portfolios are high risks, and some are medium and low risk. Depending on what type of risk you want to take, you should invest. For example, if you have $10,000 to invest, you should break it up into two or three parts and invest in various companies belonging to various industries or sectors. If you put all the $10,000 in say oil industry, then you are running a very high risk portfolio. If the oil industry is suffering losses, then your entire portfolio suffers because that is all you have got in it. Also, if you have invested in oil and petrol industry, the risk is still very high. At the same time the returns also can be very high. If the oil industry is performing extremely well, then all its related products will do well, and there will be high returns on your investment.
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