Inside Trade | Planes of Investment

"In investing, what is comfortable is rarely profitable." - Robert Arnott

There are several ways to distribute your capital and the degree of risk and profit ratio varies from each kind. The more profitable an investment always has a higher risk. Most of the time we are afraid to get out of our comfort zone and risk our hard-earned money. It is quite logical for a person to take care of the fruit of his sweat and blood. The long hours spent and the tremendous effort invested in accumulating that amount outweighs its potential for profit.

Bank Accounts

It is the safest way to invest and it doesn't require any critical thinking or any kind of special skills to enter this kind of investment. Investors most of the time prefer it because of it's minimal risk. You just simply go into a bank then open an account and just wait for the return of your investment. But the dark side of it, is that the return is so small that you could hardly feel it. The interest rates hardly overcome inflation and only the account with really huge amounts could profit from it. Unfortunately, not all posses that kind of money. Plus the fact that most of the time, it is quite difficult to withdraw.

Trust Management

Allowing someone to use your money at their disposal. A greater risk is involved in this kind investment and there is no guarantee for profit . Investors also cannot influence on how the capital should run. But the return of investment from this kind is much higher than the previous one. But take into account that the profit is divided on both parties.

Real Estate

A very expensive way but one with a potential for a greater profit with a low risk. Real estates could either be leased or sold but unfortunately not many could venture on this field. Mainly because of its huge capital.

Financial Markets

The Stock market and Forex market are both tempting field. Its allure for high profit with a small capital is very seducing on everyone's part. But beware, one mustn’t jump to this field without prior knowledge. There are difference and similarities between these two but in general they are almost the same.

It is totally up to you now to decide on which and how you would use whatever money you have to prepare for the future.