Skewness risk

Skewness risk is something that can happen when you invest in stocks and bonds. It means that the returns or profits you get from your investments could be different than what you expect. For example, some investments might make more money than you expect while others could make less money. Skewness means that your investments could have bigger surprises than you thought they would have, both positive and negative. So, skewness risk means that you should prepare for the chance that some of your investments might do better - or worse - than you expect.