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Guide to Investing
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Investing For Beginners - Know Your Risk
When deciding on which types of investment to purchase, question the downside of each investment product. Conduct your own research on its risk. Generally, low returns correspond to low investment risk and high returns to high risk. If an investment product comes packaged as a low risk product, yet promises a very high yield of return, then first time investors need to be very careful as it is rarely true. Either the product is over-promising its level of returns, or it is understating its risk exposure. The best way to assess your personal risk appetite is to look at your investing style. Over time, you will get a better idea of the level of investment risk that you are comfortable with.
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