Inflation is a general upward movement of prices. This effect is usually more pronounced for longer-term securities. Consider these investment strategies, which can help you reduce the risks associated with investing and potentially earn more consistent returns over time. Are there any Guarantees? Diversification across asset classes may also help lessen the impact of major market swings on your portfolio. If you were to invest in the stock of just one company, you’d be taking on greater risk by relying solely on the performance of that company to grow your investment.