What is an investment with a high risk with a high efficiency?
Investments with a high risk can give the chance of a higher return than other investments, but they bring your money to a higher risk.You can lose all the money that you have invested.And the chance that things will be bad is higher.
Unfortunately, there is not always a direct relationship between risk and reward - sometimes if you take a risk, you will not receive a reward for it.
What we can certainly say is that if you are looking for large payouts for a relatively short period, you must accept a disproportionately higher risk.
Although product names and descriptions can often change, examples of investments with high risk include:
- Cryptoassets (also known as Cryptos)
- Mini bindings (sometimes return bonds called high interest rates)
- Land bank
- Contracts for difference (CFDs)
Cryptoassets (also known as Cryptos)
A form of unofficially digitally active on the basis of distributed computer networks.
Mini bindings (sometimes return bonds called high interest rates)
A form of loans that take out investors for companies (often start with -ups or those who have difficulty attracting larger lenders) that offer a fixed return for a certain period.
Land bank
Plot of land without a planning permit that is sold to investors on the basis of a planning permit in the future, which may increase the value of the soil.
Contracts for difference (CFDs)
Complex financial instruments offered by investment companies, often through online platforms.
Characteristics of investments at a high risk
They are the target with a high efficiency
Investments with a high risk offer the prospect of efficiency that is potentially more attractive than that of regular investments.Mainstream Investments.
Because of association there is a big chance to lose all your money
If you choose to invest in products with a high risk, you must accept the very real risk to lose something or even all your money.Nothing, but actually because of money.
This makes investments with a high risk unsuitable for everyone except the most experienced investors who fully understand the risk and opportunities, as well as investments with a high risk with regard to and those who have the finances to absorb loss.
It is more difficult to access your money if you need it
Investments with a high risk generally offer lower levels of liquidity than regular investments, so especially if something went wrong and the performance has not met the expectations, it can be so easy to access your money if you are not so easywant to be.
Investments with a high risk are suitable for a minority of consumers, so it is probably less actively purchased and sold by investors than regular products.
Some high -risicovolle products - such as land banking schemes - can include investments in assets that are not active.Reimbursem*nt or you may have to pay sanctions.
Volatility
Investments with a high risk often look more volatility than their equivalents with a lower risk.Periods of financial uncertainty.So investors in products with a high risk must be drawn up to be much more unstable in comparison with regular products.
The lack of legal protection
The regulation is intended to ensure that consumers are treated fairly while investing.But many risky investments are not regulated by us.Others) -er) It is unlikely that you have access to legal protection against Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Service (FOS) whose things go wrong.
What FSCs and FOs do
However, Crypto marketing is regulated and you can help you protect by recognizing regulated crypto marketing.
See every time you invest in crypto, prominent warnings about the risk of losing your money and you should not receive free gifts to live or bonuses to refer to a friend.
If you do not see these warnings and offer an incentive to invest, this means that the company that offers your investment does not follow our rules and can be illegal or even a scam.Scamsmart -site.
Even with these rules, Crypto still remains a high risk without protection if something goes wrong.
Seduced by investments with a high risk?
Here are some things to remember:
- Investments with a high risk may seem more innovative and more exciting than the type of mainstream investments that everyone has already heard of.High returns are by no means guaranteed, and in practice they can sometimes produce lower efficiency than mainstream investments.The risk is the risk of losing something or even your money, very real.
- Investments with a high risk are unsuitable for everyone, except experienced investors who fully understand the risk and the opportunities of these investments.
- You do not have to place more than 10% of your total net assets in risky investments, whereby the rest is diversified in a number of regular investments.DiversificationCan work for your investments.
- If you decide to invest in which some people with high risk, directly or via a specialized fund, you must be willing to lose all your investments.money.
- When you look at high risk investments, pay attention to special attention to investment fraud.indicate more realistic returns in an attempt to look more legitimate.RampExplaining the warning signals about an investment fraud and how you can protect yourself.
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