Generally, everyone wants high return on fast time, but it generally has relatively high risk. Therefore it is sometimes necessary protection with a low risk investment even though the return is small also. There are many types of investment according to risk level. For example, the low-risk investments are deposits and gold. Mutual funds and property include in the moderate category, while the stocks have risk of high investment. Author suggestion, you must determine your financial plan, for instance when funds that you invest are needed and how can you accept the level of risk investment. Suppose you invest your money for the pension fund and you do not want a high risk in your investment, then you should invest your funds at the deposits, gold, property and mutual funds. If you do this, besides the risk of your investment will spread and also you will get good results in the end. So remember, "Never put your eggs in the same basket"
Have you done investment? If you replied "Yes", then the next question is do you know how big risk of your investment? And do you consider the financial impact when your investments experience failure or decrease in value?
3 comments
Good point here. There are investors out there who actually put in millions of dollars into one type of investment. Any smart investors would never do that.
While your are not putting all of your eggs in one basket, would you say that it is still important to avoid spreading your butter too thinly?
@ Ross M, The idea is you must to avoid maximum risk in your investment, because we still do not know what will happen in the future. Based my experiences, I put my money in stock, mutual funds, gold, property and so on, some of them decreased its value, namely stock and mutual funds. But it is ok for me because I already anticipate it. Thanks for your opinion.
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