Investment Risk Ratings

Investing can be a tricky thing at the best of time, sometimes it can be considered a bit of a gamble. Depending on your circumstances investments should be made with a degree only once risk has been assessed properly. Below is 4 examples of investments that you may want to consider along with a risk rating.

Share Trading – Medium/High Risk

Investing in shares can be rewarding however you do need to know what you are doing and know a bit about the company you are investing in as a minimum. Some benefits from share trading include:

  • Inflation rates are known to be much higher than the interest rates of commercial banks; on the other hand, it is much lower in terms of equity price appreciation.
  • The growth rates far beyond the interest rates of the bank.
  • Some companies provide a dividend– This is an amount of money which is paid out at certain milestones within the year. The amount you get paid is dependent on how many shares you own.

Buying Property- Low Risk long term.

One of the best ways to invest your money these days is through buying of properties. Whether you want to do this locally or abroad, your chances of earning money from it are quite good if you know what you are doing. There are great tax benefits you can get when you invest your money on buying properties. Properties such as already built homes and land usually increase in value as time passes by. This means that you can keep on buying properties at the moment and get the chance to earn a huge amount of money once you see another real estate market boom.

Investing in a Race Horse- Very High Risk

There is something exciting and thrilling about owning or managing a racehorse after all it is not called the sport of Kings for nothing. It is actually much cheaper compared to buying a professional or expert sports team. And of course, who wouldn’t like the thought of winning the Melbourne Cup one day. Many of the champion horses in Australia have been owned by syndicates which spread the risk as well as the earnings.

Horse Racing is a risk and can be a good source of quick income especially if you hire a top trainer, allowing you to accumulate more and more money over time.

Investing on High Interest Savings Account – Very Low Risk

This is one of the best ways where you can place your money and wait till it earns profits along the way. Here, no minimum balance is required and you don’t have to worry on penalty fees. It’s also a safer option, however the Return on Investment isn’t as great… you are at the mercy of the interest rates if interest rates remain high like Australia you should be getting a decent amount of money each month, if interest rates are minimal as is the case in the UK you are likely to receive minimal return on investment.