Are there any high risk investments good for beginner investor? Many newbie/amateur investor want to take high risk in their investing plan. But, do you think high risk investments are recommended for people who are just beginners? One of the readers of Investment Total.com, asked a question about high risk types of investments and he really wants to try them because he want to have a high return on investment.
“I am 34 years old, can use 20% of my income for my investment funds. Which do you think are the best high risk investments for beginners that I can possibly receive high returns” ~ Matt, Pennsylvania, USA
I love to hear from my readers. I want to answer this question; what are the best high risk types of investments that can help the investors received a good ROI.
There are lots of investments with high returns that you can try. You can try stock market investing, real estate investing, or even starting your own business. One of my favorite investments with high returns is stock market. Why I choose stock market? It is because it is very easy to invest in the stock market nowadays. All you need to do is to open a stock brokerage account, fund your account and buy stocks online.
Best Investment Plan with High Returns
Matt should have the best investment plan that can get high returns. He should carefully invest his money if he is planning to get high return. Proper investing includes allocation, risks profiling, analyzing market risks, etc. Matt should believe in the saying “high risk high returns“. But for smart investors, they can get high returns even if they only invest in a low risk investment options.
Investment plan is necessary. In your investment plan, you should have the idea on how and when you money will be doubled. Your investment horizon (when to start investing and when to stop). Your risk appetite should aso consider. And in your investment plan, you should mention your purpose why you’re investing.
Related: How to Create an Investment Plan
Best High Risk Investments for Beginners are Stocks and Mutual Fund Equity
In my opinion, Matt should start trying the best high risk investments for beginners such as stock market and mutual funds equity type. Mutual fund equity simply also investing in stocks but Matt has a fund manager investing for him. Since he is just a beginner, he should be guided. In mutual fund investing, all you need to do is to buy shares and the fund managers will do the rest.
If Matt will invest directly in the stock market, he should know what are the best stocks to buy, analyzing each stocks, buy them at a low price and sell them when the stock price increased. That way, stock market investing will become profitable.
Do you agree that stock market and mutual fund equity are the best high risk investments for beginners? Do you think a beginner investor should start taking high risk? Kindly share your opinion in the comment box below.