How to Invest as a Risk Averse

Several individuals do not invest due to their risk aversion. People who are risk averse tend to prefer results with low uncertainty over results with high uncertainty, even if the average returns on investment of the latter is higher in monetary value than the more certain outcome.

However, I am of the opinion that everyone can invest, even those who may consider themselves somewhat risk averse. In investing, risks can be categorised into three broad categories, low risk, medium risk, and high risk, and of course, the higher the risk, the higher the return. 

Being a risk averse individual is no disadvantage. Even if one invests only in low risk securities and is consistent, regardless of whether one is risk tolerant or risk averse, they will soon see the benefits of investing.

The key to this type of investor is consistency and over time the little drops add up. There are several low-risk investments that return an average of 9% per year over a long period of time. 

My latest book, Understanding Investment for Beginners, provides insights into these topics that you may find helpful if you are still contemplating whether to begin investing. Click Here to purchase on amazon. 



#iEphraim #iEphraimbooks 
#investing #investment #riskmanagement #riskaverse #riskassessment #investments #people #risktolerance

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