Common principles of reducing investment portfolio risks

According to experts, the Russian investment market is quite young. It may take a lot of time and money to develop, so it is important to create a conscious interest of the population in investment. To draw the attention of new investors to exchange instruments, it will be possible to study the real needs of citizens and take appropriate measures to improve the efficiency of their investments for all market participants. One of the important tasks in this area is to form an idea of each potential investor about the principles of investment activity and potential risks. It is advisable to consider the effectiveness of certain investment instruments in terms of profitability and risk. In the context of a relatively unstable economic environment, investors create the demand of the least rational way. First of all, the personal qualities of market participants influence decision-making. In the scientific literature and practice of brokers, there are already a number of mechanisms for classifying investors according to their psychological predisposition to risk and active actions. The individual characteristics of each new participant are more evident the less experience they have with investment instruments. In this regard, the paper attempts to develop universal ways to reduce portfolio risks for new market participants.