It is natural to feel disheartened after a bad experience. Still, even if you are one of the hundreds who lost money in the now-worthless structured products linked to failed United States investment bank, Lehman Brothers, do not go to the other extreme and lose your faith entirely in investment.
Instead, take a hard look at the risks and potential returns of the underlying assets in your portfolio. It is unwise to put all your money under the pillow and in the bank deposits just because they are very secure. Your purchasing power will be reduced by inflation.
A sensible combination of products with varying risks levels can provide good returns. Experts suggested that the most effective way to optimize risk is a globally diversified portfolio of different assets like equities, bonds and commodities.
For those who are confused over the potential risk levels of different asset classes, here is a general guide, from the safest to the riskiest sort of investment available.
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