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  • Vina Meliana

Which is Better: High Risk or Low Risk Investment?

Many people are confused about the type of investment they choose. Almost all of them are confused with two choices between high return and also high risk or low risk but low return. It all depends on the needs of investors in investing because the two investment options have their respective advantages that are tailored to one's interest in the investment.

High-Risk Investment

Not all can accept high risks in investing because it depends on everyone's economy. But for those who want to get high returns, then certainly you are ready to take High-risks.There are several high-risk investments that people often use as investment options, such as:

  • Stocks are a high-risk investment but have a high return of around 12-14% per year. Stock is capital participation given to companies that wish to invest. High - Risk can be obtained by the capital provider when the purchase price falls causing capital loss.

  • Crypto as a digital money in virtual form. Of course, investing in crypto has a high risk because of uncertain price movements and changes in the value of the asset.

  • Venture capital is a type of investment in the form of financing for businesses or startups within a certain period. This investment is high-risk, because investors will get money depending on the income of the companies they invest in.

  • Exchange Traded Fund is one of mutual fund investments, whose participation units can be traded on the exchange. Similar to stocks, this mutual fund has a high return but high risk.

Low-Risk Investment

Low-risk investment is an option for people who just want to save money, because this type of investment is suitable for those who do not expect high risk. Many low-risk investment options are safe and reliable for novice investors.

Mutual funds are an investment that provides a reasonable return while posing a low risk. Mutual fund investment is accomplished by entrusting the money invested to the investment manager. Then after the money from investors has been collected, the investment manager will manage the money.
  • Gold is a suitable investment for long-term investors because investing in gold will have a greater return if it is stored long-term. Of course, this investment is suitable for those of you who are beginner investors because the risks are lowl, and the price keeps growing.

  • P2p Lending as a form of a loan transaction in fintech companies, so this type of investment has a small risk because fraud in investing can be borne by the company that oversees the lending.

  • Property is an investment whose price will continue to rise because every year property prices get an increasing profit. The losses obtained from the property are very low, most likely due to fraud/fraud on the part of the developer.

Which One is Better?

These two investment risks must indeed be based on the needs of each because both have their respective advantages. High-Risk investment has the advantage of getting a greater value and is suitable for those who want to get high returns in a short time. A low-risk investment is appropriate for those of you who want to save money because the money will save for a long time.

So, learn more about investing from other people, to understand more about investing. If you want to get more information about investment, business, etc, follow and on Instagram because we provide the latest information about startups and investments in attractive content.

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