In investing, risk is not defined by probability or expected return. True risk is the likelihood of permanent capital loss when the odds turn against you. Risk, therefore, should always be viewed in absolute terms, not relative to return. Is there any return level worth the risk of a permanent loss of capital?

In an article for the CFA Institute Enterprising Investor, Sandeep Srinivas, Fund Manager at FIM Partners and specialized in EM, Frontier and MENA markets investing, highlights the importance of a prudent approach in managing risk for sustainable, long-term investing success. To emphasize this approach, the think piece provides empirical evidence based on the performance of US and EM stocks over a period of 10 years.

To read the full article and find out more: CFA Institute Enterprising Investor

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