Investment is always bundled with some sort of risk, the risk level varies
based on the type of investment. Ideally speaking, all capital preserving
investment ought to be very safe. The investment in which capital is not
preserved during the tenure normally comes with higher risk with potentially
higher returns probability.
Every person needs to quality his risk appetite before making any sort of investment. Sometimes the investor is not knowledgeable enough and unfamiliar with investing, in such cases it would be best to speak to someone trustworthy who could guide in the quantification process.
Risk Appetite normally depends on age of the investor, his dependents and his financial goals.
A good investment is one in which the real rate of return is positive, looking at the inflation figures this itself is a challenge of its own.
In some cases, investors give more priority to the liquid nature of the investment rather than the risk value of the investment. For such investors PPF and tax saving FD's are not good investments as these are not liquid in nature.
Every person needs to quality his risk appetite before making any sort of investment. Sometimes the investor is not knowledgeable enough and unfamiliar with investing, in such cases it would be best to speak to someone trustworthy who could guide in the quantification process.
Risk Appetite normally depends on age of the investor, his dependents and his financial goals.
A good investment is one in which the real rate of return is positive, looking at the inflation figures this itself is a challenge of its own.
In some cases, investors give more priority to the liquid nature of the investment rather than the risk value of the investment. For such investors PPF and tax saving FD's are not good investments as these are not liquid in nature.
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