Skip to main content

CHASE YOUR DREAMS AND TRANSLATE THEM INTO REALITY


Return is directly proportional to risk
Dreaming about huge returns? Want to convert your dream to reality? Get ready for the adrenaline rush named RISK.

What is Risk?
Risk is the possibility of happening something disagreeable or bad. But remember it is just a possibility.

 Risk is not a distressing situation; it is rather an adventurous journey like a roller coaster with lots of exhilaration and fun.











Why do you need to take Risk?
Answer is simple Return is directly proportional to risk.
It simply means “Higher the risk, Higher the return”.
Risk always pays off. If you really want to achieve something enormous in life the pathway is only RISK. It is well said that:
“The biggest risk is not taking any risk …
In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risk.”

Mark Zuckerberg

(Facebook co-founder)


This depicts the importance of risk in our life. A life without risk is a life without growth. If you don’t take the risk, someone else will. It is up to you whether to read the history of great persons or become part of the history.


   STORY BOARD



Let us now understand the risk involved in various investments. Investments can be broadly classified as follows:
1. Government backed investments: These are the investments that are purely supported by the government and are risk-less. E.g. - FD, RD, Treasury Bills, KVP, NSC etc.
2. Other fixed interest or dividend bearing investments: These includes investment options which provide you fixed income but are not purely risk free as not backed by government. E.g. –Debentures, Preference shares etc.

3. Volatile Investments: These include investments changing its value from time to time according to economic changes. E.g. – Gold, Equity shares etc.
4. Virtual Investments: These investments are solely driven by their Demand and supply and are virtual. E.g. –Bit coins.
Above diagram depicts various investments along with their risk. Change of the color from yellow to red shows the increasing risk. Wide base of the triangle portrays higher returns.
FACT:
Return in risk free investments: maximum up to 15%
Return in risky investments: Can be more than 100% or even 1000%
Age vs. Risk
Age is the phenomenon which reduces your ability to bear risk. With increase in age you should move towards fixed returns and minimum risk to enjoy your life with peace. Right time to take risk is when you are young.

Want to minimize your risk, still wants huge returns?
Yes you can minimize your risk and still earn huge returns, But how? Answer is by investing intelligently in multiple investments options consisting of both risk free and risky investments. It is technically called as making a PORTFOLIO. It is well said that:
“Don’t put all your eggs in one basket”
To sum up all we concluded that if you are young, your portfolio should have more risky investments and with increase in your age start investing more in risk free investments.
“THINK BIG
 AND YOU WILL GET BIG”
Thanks for reading the article, in next article we will learn about risky investments in detail. If you haven’t read my previous article link is below.
How to become a Billionaire?

Comments

  1. Sandeep KumarMay 7, 2020 at 11:25 PM

    Trying my best to make you understand about investments in simple terms,
    share your views through comments.Thanks for reading...

    ReplyDelete
  2. SumanMay 7, 2020 at 11:32 PM

    Nice article, I really understood how important is risk for all of us to get success.

    ReplyDelete
  3. SonikaMay 8, 2020 at 12:25 AM

    Your article really inspired me to take risk, in order to achieve something big rather than being cautious of risky investments

    ReplyDelete
  4. ParavMay 8, 2020 at 5:47 AM

    Fine writing!!

    ReplyDelete
  5. AnonymousMay 8, 2020 at 7:28 AM

    beautiful content keep it up bro

    ReplyDelete
  6. UnknownMay 8, 2020 at 8:28 AM

    Nice blog

    ReplyDelete
  7. AnonymousMay 11, 2020 at 6:50 AM

    Motivates for investing nice article

    ReplyDelete

Post a Comment

Popular posts from this blog

MASTER THE STOCK EXCHANGE JARGON

Stock Exchange Terminology Till now we understood that shares are small pieces of the amount, a company wants to raise, and you can buy those shares from markets that are now available online just like other shopping websites. Let us now understand about these markets further. A platform where shares (also known as stocks) are exchanged/ traded among buyers and sellers is known as STOCK EXCHANGE. When a company issues shares for the first time (known as Initial public offer-IPO) to public, it must get itself registered with Stock exchange which is commonly known as the process of LISTING. Persons who bought shares at the time of IPO can sell those shares anytime in stock exchange. The picture below depicts the popular stock exchange of various countries from where you can buy and sell shares. FINANCIAL REGULATORS Financial regulators are the institutions which regulates stock markets. Every market needs a regulator to protect the interest of buyers and sellers and mo
6 comments
Read more

Invest in stock market and earn huge returns without being an expert in stock market

  Want to earn more than what you earn normally on an FD or RD? Knew nothing about stock market or afraid of investing in stock market? You need not worry; you can still invest in stocks indirectly via Mutual funds. Let us understand about Mutual funds and how one can invest in shares via mutual funds. MUTUAL FUND MEANING Mutual fund is a type of investment vehicle run by a mutual fund company. These companies are run by mutual fund manages possessing high level expertise in the field of finance and stock markets. These companies pool money from various investors and invest that money in logically selected stocks and securities that are expected to provide huge return. Simply speaking you just need to provide your surplus money to these mutual fund companies and the mutual fund managers would invest your money in intelligently picked shares and other securities that provide you high returns. ARE MUTUAL FUND COMPANIES SECURE LIKE BANKS? Yes Mutual fund companies are highly secure. The w
7 comments
Read more

POWER OF INVESTING

How to Become a Billionaire? Have you ever wondered why only 20% of the people in the world are super rich and rest belong to middle class or a poor family background? What is the reason for such interlude? What is the “secret mantra” of their success and such massive wealth? Well the answer is quite simple, it is nothing but the INVESTMENT. Investment is the key which can multiply your money to infinite times. Investment is the word which we all use frequently in our daily routine. In simple terms Investment is nothing but putting your money in a certain avenue to get an optimum return in foreseeable future. For a Layman Investment is simply purchasing an FD, RD or most probably a land. But actually the world of investment is much massive than what we think, there are thousands of investment avenues which exists, but we are not fully aware about them. Following are some of the famous investment avenues in the order of risk involved in them i.e. lower to higher risk:
7 comments
Read more