Wednesday, July 1, 2009

Investment Risk

Good day to all, by now you should understand what is compounding and how investment helps you to achieve your financial goals.

Now let’s see, how many types of investment instruments or vehicle are out there for you to consider from. From conservative to aggressive, you can choose the type of investment that suits your risk tolerance. Remember, there is no investment tool that is without a risk associate to it. Even a regular savings in any bank is prone to risk. The total amount insured for 1 account in any 1 bank is only RM60K.

Below is the illustration of various kind of investment, each with its own level of risk and return.



Source :- Easy Guide to Risk , Prudential Unit Trusts Berhad.

In conclusion , the level of risk the person is willing to take is depends on the individuals investment goals as well as personal attitude to risk. Everyone know that the higher the risk , the higher the potential rewards. But , are you ready to take such risk , considering where you are now ?

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