A direct relationship exists between risk and return. Low levels of uncertainty (low risk) are associated with low potential returns, whereas high levels of uncertainty (high risk) are associated with high potential returns. According to the risk-return trade-off, invested money can render higher profits only if it is subject to the possibility of being lost. A fund manager who maintains a portfolio of stocks, bonds, real estate assets, etc. would evaluate the risks his portfolio is exposed to and would suitably employ measures to mitigate them to maximize returns to achieve the investment goals of the investors.