Always consider both the potential return and the associated risk.

1. Always consider both the potential return and the associated risk.
   
   When considering an investment, it's important to weigh both the potential return and the associated risk. The risk involved in an investment refers to the uncertainty of the return on investment. This can be influenced by several factors, including economic and market conditions, the financial stability of the investment, and the reputation and track record of the investment management.

Some common risks associated with investing include market risk, credit risk, liquidity risk, and inflation risk. Market risk refers to the possibility that the market as a whole, or specific sectors within the market, will experience a downturn, leading to lower investment returns. Credit risk is the risk of default by the issuer of a bond or other debt security, leading to a loss of the invested capital. Liquidity risk refers to the difficulty of selling an investment quickly when needed, potentially leading to losses if the investment must be sold at a lower price. Inflation risk refers to the possibility that inflation will outpace investment returns, eroding the real value of the investment.

By considering both the potential return and the associated risk, investors can make informed decisions about their investments and aim to balance risk and reward. However, it's important to remember that there is never a guarantee of investment returns, and all investments carry some level of risk.