Learn How to Spot a Guaranteed Investment
A guaranteed investment: huge return of investment with zero risk
Low interest rates from recent years have left traditional investors frustrated since guaranteed instruments are yielding virtually nothing. And even when these rates will certainly rise again in the future, guaranteed instruments are not likely to ever outpace inflation.
For many investors seeking a guaranteed investment with significant return of investment and not risk losing their principal, this creates quite the conundrum.
This is the reason why many of them are always on the lookout for top investment plans where they can double their money in few months or years with little or no risk.
Nevertheless, investment assets that yield enormous return of investment with zero risk are not a reality yet. So far, risk and returns are run a bit in parallel i.e., higher the returns, higher is the risks, and vice versa.
This means that before committing to an investment:
- You have to be aware of your own risk profile.
- Analyze the risks inherently connected to said product.
- Weight both of them carefully to find out if they actually match.
And finally, deciding on an investment opportunity that does.
Understanding investment risk
The key on how to spot a guaranteed investment
Within the vast world of investment avenues, you may find wildly different options, regarding their inherent risk, that are not as easy to catalogue at first.
A few of them are:
- Some that carry high risk but have the potential to generate high inflation-adjusted returns than other asset classes in the long-term.
- While others come with either high-risk and lower return of investments or low-risk and low returns.
- For instance, you have several investment options that pay higher rates of interest than CDs and treasury securities with a still very reasonable amount of risk.
- Or, when you take a closer look at CDs and high yield saving accounts and start considering the not so high liquidity and how volatile an economy can become, the risk increases for these often-considered safe investments.
Even if no one can’t actually make a fortune without risking anything -for those who are willing to explore all their options- they can significantly increase their investment income.
This is how you learn how to spot a guaranteed investment and avoid having to lie awake at night worrying whether your money will still be there in the morning.
One of the most common mistakes made by the majority of investors is assuming that an option is either “safe” or “risky”. This is why it’s paramount to:
- Understand investment risk as a whole.
- And all the types of risk you can encounter.
The wealth of offerings available today, often cannot be classified so simply.
Types & levels of investment risk
Your asset class is affected by more than just interest rates
To further expand on the types and levels of risk that a given avenue can have, and observe how they affect them in vastly different manners, let’s take a look at some of them:
Market Risk, which is the potential for market value loss of an asset; this risk is primarily applied to equities and secondarily to fixed-income investments.
Additional to market value, other risks associated to fixed-income investments are:
- Interest Rate Risk, basically a loss of value associated to a change in interest rates
- Purchasing Power Risk, loss of purchasing power due to inflation for the investment (the ones intrinsically tied to a currency, for instance)
- Reinvestment Risk, which is the risk of being reinvested at a lower rate of interest when it matures, respectively.
You also have general risks that can affect a large group of assets and avenues such as:
- Political Risk, meaning a political action that can diminish the value of an asset, venture or a whole market.
- There’s Legislative Risk, which implies value return or capital loss due to specific legislations and directly connects to Tax Risk
- Tax Risk, since taxation it’s decided by legislation and can both affect all investment types.
- Lastly, we have Liquidity Risk, which is the possibility that the asset or investment won’t be available for liquidation when it’s needed and it applies to fixed-income investments, real estate and other property that may not be able to be quickly sold at an equitable price, such as private company equities.
In summary, fixed-income investments such as bonds, high yield saving accounts and CDs, are exposed to:
- Interest rate risk.
- Reinvestment risk.
- Purchasing power risk.
- And liquidity risk.
While stocks and equity-based investments are more susceptible to market risk.
And while a few investments, like annuities and municipal bonds, are partially shielded from tax risk, political and legislative risk affects all investment types.
A Guaranteed Investment… Is it possible?
A new asset class
But, do you remember what we said at the beginning?
“Enormous returns of investment with zero risk are not a reality yet”.
Well, yet is accurate.
But imagine if a new type of asset existed? One that could offer:
- All the certainty akin to safer avenues.
- High returns.
- And a continuous increase in value like the more speculative assets.
- No entry-level limitations.
A True guaranteed investment…
There’s actually a company from the Fintech sector that has thoroughly studied every investment tool and it’s currently on a crusade to change the financial world, forever.
This company is called Konzortia Capital, a holding for a consortium of fintech companies that has created a different type of equity-
A new asset class (NAC) called Koura, with special features that mix:
- The advantages provided by stocks of a private company.
- With the liquidity of shares traded in a traditional stock market.
A liquid instrument that has:
- Intrinsic value.
- Will benefit its holders with dividends paid out yearly.
- And will be the base currency for all transactions that take place within a flexible platform developed with a widely used programming language.
Cutting-edge technology applications and the financial services offered by this consortium that, with the necessary business intelligence, is aimed to develop the next generation of a globalized financial market.
A complex and unique product capable of satisfying the most demanding and sophisticated investors, like you!
If you’re still not excited about this, you should be.
The best Private Placement around
The best part? You still have a chance to participate on their private sale phase, which means they’re offering to visionary investors the opportunity to participate at their ground-floor level with special advantages and preferences that raises its return of investment potential.
Just click here and learn more about this opportunity for visionaries only!