3 Risks You Shouldn’t Take As An Investor
As an investor, there is one thing you should always bear in mind whenever you think entering into an investment.
Basically, investment is not a win-win situation. You may either make it big or fall totally down if you don’t Invest in a less risky asset.
In investment, the profit accrued after a long-term commitment of either a cash advance or a property introduced is known as the return.
However, the likelihood of no realizing your purported profit after making these investments is known as a risk.
In a more detailed context, risk has to do with the uncertainty that comes with making either a wrong investment or failing to accrue the needed return from your commitment either financially or non-financially.
Investing in a bank has proven to be the most convenient way of making a fortune without any risk associated with losing your capital Invested.
Though this fact still remains valid, there are some investment channels you should never make commitments on irrespective of the massive return that will be realized after a short period of maturity.
In view of this fact, we are going to look at 3 investment channels you shouldn’t make commitments on.
First and foremost is the 50-50 risk-return form of investment. With this particular type of investment, look. With this type of investment, return usually depends on the whether the probability of making massive return or not.
Another risky investment you shouldn’t venture into is the risk less investment. With this form of investment, risk associated with making commitment is barely less than 30%. It should be noted that this type of investment may either yield 100% interest or fail totally, leaving you with no interest or less return.
One last investment you shouldn’t be encouraged to venture into, as an investor is the Investment that has short time to maturity. These particular investment properties look too good to be true. In view of this factuality, there is a 90-10 chance of failing.
It’s usually said that any form of investment that looks too good to be true has a possibility of failing. It’s therefore advisable to stay clear of these type of investments.