![]() This could make getting access to your money at short notice much more difficult. Some high-risk products - such as land banking schemes – may involve investment in assets that are themselves not actively traded. ![]() High-risk investments are suitable for a minority of consumers, so are likely to be less actively bought and sold by investors than mainstream products. High-risk investments typically offer lower levels of liquidity than mainstream investments, so, particularly if something’s gone wrong and performance hasn’t met expectations, getting access to your money when you want may not be as easy. It’s harder to access your money if you need to This makes high-risk investments unsuitable for all but the most experienced investors who fully understand the risks, as well as the opportunities, that high-risk investments involve and those who have the finances to absorb losses. And with some high-risk investments, if the worst happened you could even end up not only with nothing, but actually owing money. In fact, if you choose to invest in high-risk products then you must accept the very real risk of losing some, or even all, of your money. By association, there’s a high chance of losing all your money In practice, the actual returns could be below those of mainstream investments. But there’s no guarantee that high-risk investments will actually deliver high returns. High-risk investments offer the prospect of returns that are potentially more attractive than those available from mainstream investments. They can be used to speculate on the rise and fall in the price of a wide range of assets.Ĭharacteristics of high-risk investments They target a high rate of return Plots of land without planning permission, sold to investors on the basis that planning permission could be granted in future, potentially increasing the land’s value.Ĭomplex financial instruments offered by investment firms, often through online platforms. Sometimes difficult for even experts to understand. Mini-bonds (sometimes called high interest return bonds)Ī form of loan that investors make to companies (often start-ups or those that are struggling to attract bigger lenders) offering a fixed return over a specified time period.Ĭomplex investment products where the returns are based on specific rules, eg the performance of an index over a certain period, rather than on how the assets within the investment structure perform. Uses encryption for info security, not issued by central banks but by independent groups. A form of unofficial digital asset based on distributed computer networks.
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