Why should you prioritise investing?

  1. Liquidity risk: the risk that you may not be able to sell the asset at the prevailing market price at a short notice. Such a type of risk is high in case of real estate and gold
  2. Credit risk: this arises when your borrower is likely to default on repayments and is relevant in the case of bonds and loans
  3. Reinvestment risk: is the chance that you may not enjoy returns at the same interest rate on reinvesting your maturity proceeds. This risk may arise in case of bonds and fixed deposits
  4. Volatility risk: this is when an asset class doesn’t guarantee returns due to various economic factors. Equity is the best example of investments with high volatility

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Aradhana Gotur

Aradhana Gotur

Lives in both own and parallel universes and loves nature, music, and words (that turn into actions)

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