3 Most Feared Investment Risk

"Do I dare to take the risk in investing?" This question may often occur when you are considering for investment. You have the money USD 5,000 and you are confusing whether to put it in a bank or elsewhere. If you put in the bank, you might feel safe. But sometimes, investing in other places is often quite large and very tempting, so this sometimes scares you.

Investment risk is definitely there. Three (3) investment risk that people most feared when they invest:

1. The fall in value of investment

The most feared risk when investing generally is "Will my money be lost?" If you invest, how much you are willing to take responsibility of a value decrease if you lose? Is it 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. Loss, it must be experienced occasionally.

2. The difficulty selling the investment product

The second most feared risk when investing is whether the investment product he bought is easier to resell. Some people may be happy to invest in gold because gold is considered easy to resell.

Another example of an investment product that is not always easy to resell is the art goods collection. These collections are generally not always easy to resell because the market is very specific. So, before you decide to invest, know first how easy the investment products can be sold back. Do not invest, but you cannot sell it because difficult to sell.

3. The Investment yield/result provided is not amounting the increase prices of goods

Imagine if you invest in time deposits that provide 10% of interest a year, whereas in the year the price of goods actually increased by 15 percent? This often happens, not because of too high price increases for goods and services, but because the selected product itself is not necessarily appropriate. Some of you may want an investment product that is safe and conservative. However, the consequence is that the investment results obtained might not be able to match the rising prices of goods and services. If it continues experienced from year to year, then you will get 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.

Happy investing

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