Normally bank deposits and government securities are considered safe investments. Mutual funds other related securities can be termed as a medium risk investment and shares and Forex are high risk investments.
An investor must keep in mind the following points while investing his hard earned money.
First he must decide that how much risk he can take for the desired investment. There are a lot of things he must consider. What financial goals he has to satisfy with this investment. Is it a short term goal or a long term financial goal. How much money he needs for this goal. How much money he has right now for the goal. He must consider all these facts and take a proper decision to keep his investments are safe investments.
Identify some possible investment opportunities and the risk factor in it. While identifying these investment avenues he must choose the most suitable investment method also. When you compare investment methods he must keep in mind his need also. Take a best suitable decision and invest in them.
Do not choose only one single investment method. Invest in a variety of investment schemes. If one fails the others will give you enough profit to satisfy the failure and so you can make safe investments.
Do not invest in long term investment opportunities for short term goals. IF so you could not satisfy your need successfully with the investment.
Fix a risk hierarchy of investments, just like a bank savings account, bank fixed deposits, Fixed maturity plans, Gold ETF, equity mutual funds, shares and Forex. If you could fix the hierarchy successfully, you can survive in the field of investment and your investment will be safe for ever.
Please keep in mind that I didn’t mean high risk investments are not safe investments.High risk investments can offer high profit or high growth. But when you have enough gap between your investments and the financial goal you have to satisfy with it, those high risk investments also can consider safe investments. If there is enough time, one can make a good benefit from high risk investments also. So keep a safe distance between you investments and investment goals. That is enough.
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