Finance..

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Asawari Malhotra (Querist)
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19 September 2013 they say higher investment implies greater risk... but with higher investment in your business aren't you able to have better technology and competent professionals to manage your business, better advertisement and distribution system,etc all these factors reduce risk.. then why is it said that higher investment implies higher risk?

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013 Hi

The higher implies does not always a higher risk it also give higher return if the marker condition and company performance is better. So Investment have both kind of effects. So you can says that higher investment involve higher risk as per market condition.

Second think, The higher investment in company yes can affect business as you said earlier.

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Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013
A high-risk investment is one where there is either a large percentage chance of loss of capital or underperformance, or a relatively small chance of a devastating loss. The first of these is intuitive, if subjective - if you were told there's a 50/50 chance that your investment will earn your expected return, you may find that quite risky. If you were told that there is a 95% chance that the investment will not earn your expected return, almost everybody will agree that that is risky.

Risk is absolutely fundamental to investing; no discussion of returns or performance is meaningful without at least some mention of the risk involved. The trouble for new investors, though, is figuring out just where risk really lies and what the differences are between low risk and high risk.

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Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013
Best investment plan with high returns may sound catchy but this this isn’t the easiest thing to achieve. For time being identifying a best investment plan with high returns looks like a distant dream. If you will ask me, there is nothing called as best investment plan. There are only handful of options that has potential to give high returns. In fact all high return investments are subjected to high risks. Investment risk comes with volatility and this volatility is an inherent part of equity linked investment plans. The best investment plan with high returns in India is equity linked investment. To earn high returns one shall create an investment portfolio which is heavy in equity. Bottom line is, the composition of investment portfolio will decide if the desire to earn high return will be met or not.

Asawari Malhotra

Asawari Malhotra (Querist)
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20 September 2013 Thank you sir .. Your answers are really helpful !

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013 My Pleasure...........

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013 My Pleasure...........

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