Investment Risks خطرات سرمایه گذاری

Investment Risks

Investment Risks

Investment risks include the difference between the expected profit and the actual profit. This difference and final yield is either positive or negative. If we face a high negative return and the probability of our failure is high, then the amount of risk and investment risks will also increase. Therefore, investing always exposes us to all kinds of risks and dangers.

The Main Risks in Investing

1. Market Risk

Market risk refers to the risk of decreasing the value of investments made due to economic challenges and political developments that generally affect the stability of the market. There are more serious investment risks in 3 markets:

a. Stock Market

Investing in the stock market is always at risk because the price in this market is deeply dependent on the supply and demand rate. Stock risk is caused by the decrease in the value of the stock market.

b. Interest Rate

This is called investments such as bond investments. The risk in this type of investment is losing money due to changes in interest rates. For example, if we face an increase in interest rates, the value of bonds in the market will decrease.

c. Currency Market

The risk in foreign investments is due to currency fluctuations. During these fluctuations, we may lose part of our capital.

2. Liquidity Risks

It is related to the time when we are going to get our money. In this situation, the risk of not being able to sell at a fair price will threaten us. In the case of investment sales, we may have to accept a lower price.

3. Risk of Concentration

Concentration risk means concentrating our investments in one point. Capital concentration in one point increases the risk of capital loss. When our investments are diversified and in different areas, this will spread the investment risk in wider dimensions.

Investment Risks خطرات سرمایه گذاری
Investment Risks (I.R)

4. Credit Risk

In this type of investment, there is a risk of financial crisis for the government institution or the company signing the bonds. If that organization is facing crisis and financial problems, it will not be possible for him/her to pay interest or repay the principal amount.

5. Risk of Inflation

As a result of inflation, we may lose our purchasing power; Because our investment is not aligned with inflation. Inflation risk will directly affect capital. If we have cash assets or bonds, buying stocks can protect our capital in inflation conditions.

6. Risk of Foreign Investments

This risk occurs when we invest in foreign countries. Loss of capital in foreign countries is a very tangible and predictable event; Because the relations between the countries are always involved in instability. Along with the political and social currents, we are also facing severe currency fluctuations.

Low Risk Investments

Despite the high risk of some investments, there are some investment funds that we can use with the least risk. From the series of these funds, the following can be mentioned:

1. Fixed income investment fund

2. Stock investment fund

3. Mixed investment

4. Gold investment fund

Investing in Digital Currency

Due to the extreme fluctuations in the stock and currency markets, a significant number of people are currently willing to invest in the digital currency market. However, investing in this market cannot be considered without risk. From the series of risks related to investing in the digital currency market, the following can be mentioned:

1. Crypto Currency Trading Restrictions

Due to the concern of some security institutions, in the future we may see the prevention of some countries from obtaining, holding, buying and selling and using Crypto currencies.

2. Price Fluctuations

One of the most important Crypto currencies is Bitcoin, which has the most extreme price fluctuations. This type of digital currency is highly affected by political and economic events and its price increases or decreases quickly.

Investment Risks خطرات سرمایه گذاری
Price Fluctuation (P.F)
3. Intangibility

Investments related to property, land and cars are external and fully accessible. But investing in digital currencies is riskier because it is virtual. Because we invest in something that doesn’t really exist. For this reason, it has low security and high risk. Even in this regard, there is a possibility of capital theft in digital companies.

4. Lack of Awareness

The high profit that seems to be obtained through such investments draws people to this market. Unaware that investing in the digital currency market requires learning techniques and having sufficient information in this field. Therefore, there is a greater risk of capital loss for these people.

Up To Sum

Investment is one of the most sensitive commercial and economic measures. Because entering the field of investment without considering the relevant market conditions and lack of sufficient knowledge of the existing risks may completely destroy our capital.

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