Safe Investing
Safe Investing
The safest investments can be defined as to invest the funds in such manner that the worth of overall investments increases over the time in the presence of different adverse elements such as inflation and time value of money. It is rare to find the safest investments in the fluctuating business environment, however, the saving account schemes or bonds are considered as the safest investment for the investors because banks at least guarantee the return of the principal amount of the withdrawal. From the point of view of an investor, it is safe for the investor to start the investment portfolio of the least risky investments such as bonds and bank saving accounts which have no risks. For the employees, the best safe investment is to invest in the proper pension scheme to get the exact amount of money after the maturity of the pension. However, in practical business scenario, there are certain methods to keep the risk level in control or at the acceptance level of the investor to mitigate the losses. (Tuchman, 2013)
The amount of interest or returns can increase with the level of risk taken by the investor. If the risk level of losses in one industry is high, then the dividends or return will be higher than the other industries. The best method of investing safe is to invest in the larger and financially established companies to insure the constant dividends. If the investor is not a risk seeker, then the investor can identify any booming industry to increase the worth of his investments and reinvest his investment in other industry. For example, the industries such as smart phones and telecommunication are on the boom these days. Another tool to minimize the risk is to use the hedging technique to secure the overseas investments, payments and collections. However, to keep the investments safe, the best investment tool is to invest in different industries, sectors and companies to reduce the risks. (Steverman, 2015)
References
Tuchman, M. (2013, November 14). Safe Investments With High Returns Demystified.
Retrieved January 26, 2016, from http://www.forbes.com/sites/mitchelltuchman/2013/11/14/safe-investments-with-high-returns-demystified/#5330516d55aa
Steverman, B. (2015, April 22). How 'Safe' Investments Could Destroy Your Portfolio. Retrieved
