Shares are one of the most risky types of investments because they can skyrocket or fall drastically in a short period of time, which is dangerous because large sums of money one may have invested can be lost without the shareholder even knowing. Purchasing individual shares is inexpensive but purchasing many can cost a lot although, it can lead to the shareholder receiving a larger profit. Seen as they can give someone a lot of money or take a lot of money, shares are labeled as high risk, high return. If you invest in a share on the stock market you become a shareholder who is entitled and liable to your investment. One day the share market could be going great and plummeting, then the next it could be at the bottom of the graph making a huge loss. This is why shares are unpredictable and high risk/high return.
The property market is one of the best investments you can make because the value doesn’t …show more content…
The advantage of superannuation is that you only have to pay a premium of a couple dollars each week and eventually when you retire from the workforce you might have up to one million dollars or more to spend. It is low risk high return because instead of paying millions of dollars all at once and upfront, you only need to pay a few dollars a week to eventually have a lot of money to use for when you retire. Whats good about superannuation is that as soon as you retire you have immediate access to the funds you have saved up and the risk of losing money is very low because the costs are fixed and the income is