Diversifying Your Investment Folks!

Ladies and Gentlemen,

When it comes to investment, I ain't the right person to speak or write about it. You might be aware that I have no experience whatsoever in this field. Nevertheless, I do feel the need of all of us to put our money in the right place to maximize the profits, unless you want your hard-earned money to lose out to inflation.

After reading some blogs, writings and materials over the net on this topic, it is safe to conclude that our investment portfolio represents our true self, in term of who we are and the risk that we are able to tolerate. As a newcomer, ones should realize the risk that we face such as the possibility to lose some, or all of the money we put for investment due to uncertainty of the market direction, or can be summed up as the chances to lose money. In term of risk involved, lets classify the avenues of investment into several groups;

• Less Risk, Low return such as Fixed Deposit and saving account;
• Less Risk; Medium return such as Amanah Saham by PNB for example;
• Medium Risk, Medium return such as Unit Trust;
• High Risk, high Return such as stocks, and property;

Folks, of course the way I put all the avenues of investment as per above mentioned group is subjected on how we determine our Return of investment (ROI). Ones could say that 6%-8% of ROI per year is low to their standard due to the inflation rate in certain countries and the other way around. Well, the general rules of thumb that we need to understand is there is no such thing as free lunch. What I meant to say is everything doesn't come cheap, there is no investment that has low risk but could produce 20%-30& of profits per year.

To conclude my post, remember remember, invest something you could afford to loose.