Beware of inflation.
The longer you leave your money in fixed deposit, the higher the risk of inflation eating away the purchasing power of your money.
Money market investments are safest when the money is needed in the short-term.
The very same safe investments become high risk the longer they stay invested.
Stocks are on the opposite track. They are high risk investments in the short-term, but are lower risk investments in the long term:
Fixed deposit
1yr = Low risk
10 yrs = High risk
Stocks
1 yr = High risk
10 yrs = Low risk
http://myinvestingnotes.blogspot.com/2008/10/risks-of-investments.html
The longer you leave your money in fixed deposit, the higher the risk of inflation eating away the purchasing power of your money.
Money market investments are safest when the money is needed in the short-term.
The very same safe investments become high risk the longer they stay invested.
Stocks are on the opposite track. They are high risk investments in the short-term, but are lower risk investments in the long term:
Fixed deposit
1yr = Low risk
10 yrs = High risk
Stocks
1 yr = High risk
10 yrs = Low risk
http://myinvestingnotes.blogspot.com/2008/10/risks-of-investments.html
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