Performance or style risks  Performance risk is the short term risk of under performing the main domestic stock market index due to the nature of a particular style of investment or allocation to global markets.
Different investment styles take different positions from the market to either reduce risk, increase dividend income or to invest in areas that are undervalued or unrecognised growth areas of the market. Under performance from a style can often be significant and last anywhere between 6 months and 3 years. With an overseas allocation for example, the Canadian stock market might be rising while others are falling. This is not necessarily a risk to financial security, although it can be if the portfolio is not properly structured. More importantly, if investors are not educated over the risks as well as benefits of an investment style there will be a conflict of expectations. Assessing this risk is very important. It is a risk which is rarely assessed within the retail financial services industry. 
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