Different types of investments carry different types of risks and are usually rewarded accordingly. Higher returns usually indicate higher risk and lower risk investments generally offer lower returns.
Your attitude towards risk and the amount of risk you can tolerate is something that you need to think carefully about before you invest. An independent financial adviser can help you assess your appetite for risk before you invest.
You can never avoid the risks of investing but you can try to moderate them. One way of doing this is by investing in a range of investments. This is known as diversification and really means not putting all your eggs in one basket. The idea is that losses in one type of investment will be offset by gains in others.
All investments carry risk, and returns can never be fully guaranteed. So it is important to choose an investment that suits your circumstances. If you are prepared to accept a higher level of risk, you may want to hold more equities, as they can offer good long-term potential. If you have a lower appetite for risk, you might prefer the income produced by bonds and cash, which tends to be more reliable than equity returns.