high risk investments

What are the best high risk investments?

Thu Apr 22 2021 09:19
Investments are not always about risk. Yes, there are risks associated with investments. But the amount of risk is different for different types of investments. When we talk about low risk investments, they provide us low ROI compared to the high risk deals. And on the other hand, high risk investments give us high return. So it is never good to say that high risk investments are not good for anyone. 

They are good because they give high returns. But there are more chances of losing money. While low risk investments ensure that you will not lose so much money but you will have a low amount as return for sure. 

Diving deep into high risk investments 

Without discussing which of the two risk investments is better, let us discuss what are the best high risk investments. Both investments are used by investors and fund managers around the world. For some investors, high risk investments are good. While some prefer to invest in low risk investments like stocks and bonds. 

So it depends on various factors which one is good for you. But if you have decided that you are going to make a high risk investment. Then here we are with some of the best high risk investment options. 

#1 Cryptocurrency 

Cryptocurrency, which is based on blockchain technologies, is one of the best investments with high returns. But just as there are high returns in this type of investment, there are also some risks and losses associated with cryptocurrency. 

Cryptocurrency is based on blockchain technology and these cryptocurrencies like Bitcoins, Litecoin, Dogecoins are not centralized. These decentralized currencies are not under the control of any financial regulator and are not considered safe. But if we see the return on investment, it is high for cryptocurrencies. 

#2. Options 

Investing in options is one of the riskiest investments. But, it also gives a nice return. It is never recommended by the experts. As a beginner, you should not invest in options. This is because, in options, you have to get involved in buying or selling a contract. This means that the buyer can buy the specified asset at a specific time. 

#3. foreign currency 

Foreign currency trading can be risky due to the liquidity and volatility of this market. Foreign exchange is never considered safe for the investment portfolio of beginners. A lot of analysis is required while trading currencies. It is less risky as compared to trading digital currencies like cryptocurrencies. This is because very complex analysis is done while trading a currency. 

Even if we take a look at the technical indicators, trading indicators and market influencing factors, they are complex to understand for the beginner in forex trading. 

#4. High-Risk Share 

Stock trading can also be risky if we choose to invest in high yielding stocks and shares. There are thousands of stocks listed in the stock market. But not all stocks are of the same type. 

The risk appetite for different stocks varies. As a stock market trader, you need to choose the right kind of stocks. Some stocks offer you high returns, but they also come with high risk. 

#5 High-yield bonds 

Bonds are offered by various mutual fund companies or capital management companies. These bonds are very useful when we want to get high returns without any problem. But some bonds have low interest rates and some have high interest rates. The bonds with high yields are called high yield bonds. But they are also considered as risky investment. 

#6. Growing Foreign Markets 

In some countries we can discover some opportunities to invest your money. Some small economies have new growing markets. These markets are captured by many foreign investors. 

As a foreign investor, you can invest directly in one of the growing foreign sectors or markets. And you also have options like indirect investment by buying ETFs for a particular sector in that company. 

#7. Initial Public Offerings (IPO) 

When a company wants to be listed in a stock market, it sells its shares to institutional investors through an Initial Public Offering (IPO). An IPO also provides opportunities for retail investors. As a retail investor, you can also invest in an IPO. 

The advantage of an IPO is that you get shares in a company that is not yet listed on the stock exchange. This means you get stocks and shares in the company for a small amount of investment. But no one is sure if the company will grow or go under in the future. So the risk is always there. 

#8. Real Estate Investment 

It is one of the safest things as told by some famous and successful investors. But it can also be a risky investment if you make wrong decisions. There are a lot of things you need to consider if you want to invest in the real estate sector. 

This sector is not always in a boom. Yes, we know that real estate is growing in a safe mode. But still, there are chances that you lose money in real estate. But if we see the returns that real estate investment offers, then it is a good option of investment

#9. startups 

Startups are always there to help you grow your money. But there is a lot of risk involved in investing in startups. There are many venture capital events happening all over the world. At these events, you can find startups seeking investment from capitalists. 

You can invest your money in startups. These startups can help you to increase your money. But always keep in mind that not all startups grow and succeed in their field. Every year, a hundred or maybe less startups are successful. But the number of failed startups is always high. 

#10. direct investment 

If you feel that a business is doing well in the market and can be scaled up. Then you can invest directly in that company and many investors choose this route. However, it requires great experience to smell which company will do well when it has grown. So, you need to analyze things more carefully before approaching a company for investment. 

Summary - Best high risk investments

Investing your money for high returns can be risky. But that does not mean that no one will invest in high-risk mutual funds. There are many investment opportunities in the market that offer profits. You can invest in more volatile currencies like cryptocurrencies. These digital currencies are the future of the world. But they come with risks. 

There are also high-risk stocks that you can invest in. All high-risk investments will give you high returns. But as a trading beginner, you need to go with low-risk investments. However, if you have experience in investing with risk, then you can choose one of these 10 best high risk investments available in the market. 

You should choose an investment and then you need to calculate the risk. After that, you can try it out to see whether that asset performs better or not. If it performs well, you can invest in it. Achieve your financial goals through diversified investing, start investing now. 

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