3 RISK INVESTMENT THAT YOU NEED TO KNOW
“Dare I take a risk in investing?” This question may often be thrown when you are considering for investment. Say you have the money and you are confused whether to put it in a bank or elsewhere. If put in the bank, you might feel safe. But sometimes, the offer of investments in other places are often quite large and very tempting, so it is sometimes frightening you.
Whose name is certainly no risk investment. Well, from my experience so far, usually only three (3) the risk of the most feared men when they invest:
1. The fall in value of Investment
The most feared risk when investing in general is “Will my money be lost?” Most people might answer “no” when asked like that. However, the problem is, who would risk his name is on every investment. Only difference is in size. There are investment products that the risk is big enough, there are, some are small. Clearly, one of the most feared man, once again is: “Will my money be lost?”
Now if you invest, how much you are willing to decrease the value of responsibility if you lose? 10 percent? 30 percent? 50 percent? Or 100 percent? Regardless of the loss you are willing to bear, remember, it is part of investing. Do not ever expect you will continue to profit. Whose name is a loss, it must be experienced occasionally. If baseball experience, yes learn baseball, right?
2. Investing is Difficult Items For Sale
The second loss of the most feared man when investing is whether the investment product he bought it easier to resell. Some people may be happy to invest in gold because gold is considered easy resale. However, there are also people who invest in U.S. dollar currency, and dollars are quick inclusion to the bank. This is because when the dollar was kept in the closet, then the physical condition of paper money may be decreased, and it will sometimes be difficult if one day the dollar was about to be sold again. Understandably, some banks often do not want to buy your foreign currency when the condition of paper money was torn, damaged or crumpled.
Another example of an investment product that is not always easy to resell the goods collection. Collection of goods is generally not always easy to resell because the buyer the goods market is very specific. Painting, for example. Because of its market-specific, not always easy to sell the painting. But, once sold, could have a very high price and provide a considerable benefit for people who sell them.
So, before you decide to invest, find out first how easy it is an investment product can be sold back. Do not let you invest but can not sell it, because things are difficult to sell.
3. Investment Results Provided Not A sum of Goods and Services Price Increase
Imagine if you invest in time deposits that provide 10 percent interest a year, whereas in the year the price of goods and services actually rose 15 percent? This often happens, not because of too high price increases for goods and services, but because of the selected product itself is not necessarily appropriate.
Some of you may want a product that is safe and conservative investment. However, the consequence is that the investment results obtained might not be able to match rising prices of goods and services. If it continues you experienced from year to year, then you will go bankrupt.
What should you do to deal with this risk? Do not close yourself to the information. Learn about other investment products that you may not know, and then try to go into it with considering all the consequences. Over time, you can surely overcome the high rising prices of goods and services by investing in products that are potentially able to provide higher yields than the price increases.