When you invest in anything, you generally tend to worry about only the 3 musketeers of investment, ‘Safety’, ‘Access’ and ‘Returns.
There is no investment vehicle or ‘asset class’ in technical terms that offers you the best of all the three. Like the 3 musketeers, they complement each other, and each investment objective dictates which one will prevail. For example, look at the picture below and you will understand what I am saying.
Unfortunately, the answer is not so simple, you need to be invested in all of these asset classes in equal proportions. Simply put, diversifying into more than one asset class is the only way to protect your money. Like this article? Please share it with your friends and feel free to comment on this article below. I would love to hear your views. Next step in the ‘How to invest safely’ series is Step 3 – Saving or Investing – which is right for you?
Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide. He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’. He helps business owners and professionals ‘Create A Second Income’ through investments.