Almost every stock broker will have you take a risk tolerance test before you invest in any of their offers – be it life insurance, shares or stock investment. This helps the stock broker know where you stand with regards to the amount of money you are willing to spend and how you are willing to spend it.
Investing is always accompanied by fear of the unknown; however, consider these three good outcomes:
HIGH RETURN
Depending on the investment, the rewards can be high. Be sure you know what you are getting into before taking the risk. And be aware of the level of risk you are willing to take. Often high investment equals high interest rates. What you put in could come back 10 times more. However, the risk you take here is losing the money you have invested.
ECONOMICAL BENEFIT
Any investment, be it big or small, with any company by any South African citizen is a bonus for the economy. Deciding to take a chance with a company such as MTN or Pick n Pay will benefit you in some way or another, but will bring about change to the economy. Globally, this would make South Africa look attractive, financially speaking of course. You will thus be doing something for the economy.
GROWTH
Whether you win or lose when it comes to investing, it is all part of the experience of growing and learning. One mistake can be of benefit in the future. However, no matter the type of investment you choose (for example unit trust, index futures, or penny stock), and how you choose to take it, make sure you get financial advice first, and have full research on the investment. Be open to any possibility, and be willing to take a chance.
