There are many decisions to consider when making any investment. One of these is how much risk you are prepared to take. This will be determined by a number of different factors. In this guide, we take a look at the different types of investment risk and how it can relate to returns. Your appetite for risk will depend on your life stage and whether you want to grow your money over the long term or need to draw a regular income. Usually, your age and relative proximity to retirement will determine whether you’re investing for the short term (one to three years), medium term (three to five years) or long term (more than five years).