Investing: In today’s time, everyone invests, and many people benefit from it, as well as incur losses. So, let’s understand why investing is riskier than saving. There’s less risk in saving because when we save, the money stays with us, so we don’t face any problems.
But if we invest, there’s a risk because there’s always the fear of losing money. Because wherever we invest, markets and businesses fluctuate, so the chance of loss in investing is high. The money we save stays safe with us, and we have complete control over it, which is why saving is considered better than investing.
Why is investing high-risk?
In investing, you don’t have much control over how the market and a particular business will perform. If the market performs well, you will make a profit, but if the market does not perform well, you will incur losses. That’s why investing carries a high risk.
What are 3 risky investments?
Many people love to invest money because investing offers a chance to make a profit. However, many investors also seek to maximize their profits, so they invest in the most risky investment options, which have a high chance of yielding high returns but also carry a high chance of incurring losses.
Here are the top 3 risky investment options:
- Cryptocurrency: Cryptocurrency is a digital currency that depends on demand and supply, making it one of the riskiest investment options. Cryptocurrency is also not controlled by any Government, so it’s risky to invest in crypto.
- Stocks: Investing in stocks and buying stocks of different companies carries the risk of incurring losses if done without proper financial and share market knowledge. Therefore, it’s also one of the risky investment options, albeit with proper knowledge.
- Angel Investors: Many investors seek high returns by investing in new startups and companies based on their business ideas. However, this is a risky investment because no one knows how the business or product will perform in the real market.
What are the safest investment options right now in India?
In India, a lot of people don’t want to take any risks, so they invest their money in very low-risk options, where the chances of getting losses are low. Additionally, people in India prefer saving over investing.
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Here are the 5 safest investment options in India:
- Mutual funds
- Fixed deposits
- Insurance
- Real estate
- Gold
