Do you want to invest with high yields or low yields objectives but you can't choose the right channel to venture into due to the risks involved. Are you an enthusiast but your probable investment opportunities are worth doubting? Why not donate your 15 minutes to reading this article?
This article is aimed at doing exegesis on the other channels open to an investor asides investing in shares. It is our belief that such knowledge will enhance the ability of the readers to decide or choose the right investment platforms they may consider desirable to plan for . The characteristics or nature and benefits of each channel are duly discussed along line the riskiness or vulnerability to failure, profitability, and general remarks with all indicators
· Savings And Fixed Deposits, Mostly With Banks
Fixed deposits as a form of investment are risk-free until recently when fraudulent banking practices surfaced in the society. There had been several bodies, since then, to curb bank frauds. To learn more about how to stay safe online and how to use your credit card wisely, check our latest posts. The profit is determined by the rates , which vary from bank to bank. Generally, savings in current accounts attract very low interest, and such accounts often attract charges like cost of turnover. In the wake of bank recapitalization, and the advent of mega funds with huge funds in their custody, interest rate on funds placed with banks is not likely to be attractive. This channel is open, available and useful to any citizen irrespective of age or personal attributes except that money laundering is an offence.
· Insurance Policies
Here, the risk is limited to the liability of the insurance company to settle claims when they arise,once the documents are properly prepared. This channel is a sanitized sector where age plays a lot of roles. Younger ones have better business advantages and benefits to derive from life insurance placements. Investing in insurance policies may mean securing against some failures. So, the profit motive is limited.
· Investing In Commerce
The venture in this area is highly profitable but, the risk of poor management, inadequate working capital, credit management and failures are always present. Extra supervision by the investor is required as such ventures usually encounter succession problems.
· Investing In Property Development
Property business is highly profitable in urban cities. Opportunities are daily emerging around educational and other economic development centers like industrial estates. They also last with value most likely to be rising with time. You may willingly check our post about mortgages for more information about investing in property development.
· Investing In Industrial Projects
As in commerce, and in all commercial projects, the risk of poor working capital, labour relations, raw materials, succession, general management, non availability of necessary infrastructures may bane industrial activities. Investing in industrial projects is very veritable. You may monitor your profit using Production Cost + Profit Margin = Price
· Investing in the money market
The risk is very low in terms of losing the investment or the promised interest. Profitability is very low but assured. This channel is good for the risk averting people
· Investing In Public Companies
In a well-managed company, the profit is good and steady. The investment itself usually keeps on going though, in some cases, dwindles. Professional counselling can reduce the risk of failure. The investor is not always worse off than any one else in the economy. Portfolio management strategies enable risk to be spread. To learn more about how to manage your portfolio, how to choose a portfolio size and how to diversify and manage risks, check our latest posts.
Yep!! Here comes the end of this course, hope this exposition enlightens you to choose a channel of investment wisely. If you need to learn about how to help your personal or business finance, check our trending posts or subscribe to our newsletter so as to get notified whenever an update is dropped. Be part of the leading team! Note, all courses are compiled based on the outcomes of researches done by our groups of finance analysts. Thanks
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