From the course: Developing Investment Acumen

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Investments and assets on the risk spectrum

Investments and assets on the risk spectrum

From the course: Developing Investment Acumen

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Investments and assets on the risk spectrum

- Risk is something all investors need to keep an eye on. Taking on too much risk can mean losing money and losing sleep from stressful nights of worry but taking on too little risk leaves little opportunity to grow your savings. Getting your risk balance right is important and in order to get it right, you need to know what different things you can invest in. So here are investment opportunities ranging from low risk, low chance of capital loss and low chance of high returns to high risk, higher chance of capital loss and higher chance of large gains. At the bottom are savings accounts. They're super safe but as we all know offer very low interest rates. Next up the ladder are high-quality bonds. They're essentially loans you make to a government or a business for which you get paid interest. Bonds are rated by independent third parties. So the risk is relatively easy to see and investment grade bonds, those with high ratings, are very safe and pay reasonable interest rates. Now, to…

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