When you are a small investor, you cannot afford to lose. Therefore, you need to be extra careful about not losing your investment, you will have to avoid high risky assets and try to diversify as much as you can. You need to carefully evaluate your risk tolerance level to mitigate risks investment. Real estate is the safest investment but for small investors this might not be possible. You can try fixed deposit bank account that gives you better returns than a normal saving amount. Likewise, you can try Mutual Funds and Bonds, which are less risky that the stock market or even crypto market.
How to Manage Risks in Investment as a Small Investor
- Thread starter Mika
- Start date
As a small investor you don't actually have much option on what to invest in in the stock market especially if you are looking for a risk free type of investment, so I will advise you to go for a more safer investment routes like a fixed deposit that is a tenure based investment.
You get a fixed percentage per annum and the more you add to your initial investment the more returns you can make, there is also a zero chance of losing your initial investment, it is way better than just investing in the markets with a small principal or capital.
You get a fixed percentage per annum and the more you add to your initial investment the more returns you can make, there is also a zero chance of losing your initial investment, it is way better than just investing in the markets with a small principal or capital.