Tuesday, March 19, 2013

Investment Risk


The investment is an activity that can generate many currencies if done the right way. Any type of investment will always have the risk so it is very important to advice and train before investing in any security.



When a person makes the decision to invest, which is must take into account all possible risks that the investment can bring. Depending on the size and type of investment and its risks are. In this section we briefly three types of investment:



Low Risk Investment

Moderate Risk Investment


High Risk Investment



Low-risk investments are those with very low probability that can be lost. Among the most common investment of this type are investing money in the bank through mutual funds and certificates of deposit. Those who invest in this type of security can be assured that your investment is very safe and cared for. Moreover, this type of investment does not really generate a lot of dividends as you are not risking much.



Moderate-risk investment more likely to present risks but still the risk involved is not very high. Such investment will generate profits much higher than low-risk investments but for the amount involved is much higher. Among the types of moderate-risk investments are cash investment, investment in bonds and real estate investment.



High-risk investments not only involve a contribution of much higher initial capital but also the risks of losing everything is much more evident. This type of far more unstable and volatile, which in many cases can not predict exactly what will happen as these investments are tied to many variables that are completely beyond the control of the inverter.



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