Abigael
Valued Contributor
Investment is an important practice in which you let your money work for you. As such, you earn profits even though you don't do much.
Risks come in different levels; high or low. It is therefore important for you to check your risk appetite before investing.
What is risk appetite?
According to my Vocapture dictionary;
Returns on investments are not guaranteed. High-risk investments mean that there is a high chance of losing your money. On the other hand, low-risk investments have more possibility of paying back.
Can you afford to lose your invested money?
One of the best pieces of advice for investments is that you should invest only what you can afford to lose. Checking your risk appetite answers this question. High-risk investors should prioritize investing in what they can afford to lose.
How patient are you to wait for the returns?
This applies to low-risk investments which usually take a long time to give returns. If you invest in them, you should be willing to wait for a while.
I call upon you today to check your risk appetite before investing in any program or method. It will enable you to plan your portfolio and decide how you are going to invest; low or high.
Risks come in different levels; high or low. It is therefore important for you to check your risk appetite before investing.
What is risk appetite?
According to my Vocapture dictionary;
Difference between low-risk and high-risk investments.risk appetite
Noun
risk appetite (plural risk appetites)
- The amount of risk that an investor or other entity is willing to accept in pursuit of a return.
Returns on investments are not guaranteed. High-risk investments mean that there is a high chance of losing your money. On the other hand, low-risk investments have more possibility of paying back.
Can you afford to lose your invested money?
One of the best pieces of advice for investments is that you should invest only what you can afford to lose. Checking your risk appetite answers this question. High-risk investors should prioritize investing in what they can afford to lose.
How patient are you to wait for the returns?
This applies to low-risk investments which usually take a long time to give returns. If you invest in them, you should be willing to wait for a while.
I call upon you today to check your risk appetite before investing in any program or method. It will enable you to plan your portfolio and decide how you are going to invest; low or high.