You probably want to take on a little higher risk than usual, searching for more info on how to get higher-return-than-usual on your money. That's a wise step, because we should never put our hard-earned money into investment plans without first learning some investing basics and doing our own due diligence on the investment plans offered to us.
Although this blog was titled Guide to HYIP World, we will not discuss about HYIP investment this time. Those the so called HYIP investments - which are abundant in the internet - are in essence not investments at all. They are just "pseudo investments", nothing more than ponzi/pyramid schemes that is illegal in most established economic system. The word "investment" is used merely to lure unsuspecting beginners. So, if you want a real investment, legitimate investment that can give high return for your invested money, you can delete and forget HYIP investment from your potential list.
There are many ways you can take to get decent return on your invested money. However you should never forget this principle: the higher potential return of an investment, the higher risk it bears. So, it is wise to devise a portfolio for your investment to minimize the risk and maximize the return. A good investment portfolio will serve you in two areas: protecting you from sudden huge losses when your high-risk high-return investments gone bad, and backing you up adding more profit for you in the booming economy that results in better performance of nearly all of your investments.
How you plan your investment portfolio depends primarily on your risk tolerance. People with high risk tolerance tend to have more high-risk high-return investments into their portfolio than people with lower risk tolerance. With such combination in their investment portfolio, they may end up with much more money than those of low risk-takers if everything goes fine. But if not, they will have to face the grim reality of losing most of their initial investment that may take them years to recoup.
Older people are usually low risk takers, naturally because they realize that they may not have enough time to recoup if they take too much high-risk high-return investments and then something really bad happens. That also explains why most of those risk-takers are younger investors.
Basically, you should comprise your investment portfolio in such a way so that the overall return will exceed the inflation rate. There is no point investing if in the end you find yourself poorer than before. And some considered low-risk investments really give lower rate of return than the inflation rate. But nevertheless, they offer stability and security. So, combining them with moderate-risk and higher-risk investments that give higher percentage of return are recommended.
Some examples of low-risk low-return investments are: saving accounts, Western Government bonds and certificates of deposit while some examples of moderate-risk medium-return investments are real estate, equity mutual funds and shares. High-risk high-return investments are commonly found in the form of stock investing, investing in foreign exchange and in commodities. More about each of these investments will be discussed later.
