FINANCIAL AWARENESS MESSAGE 5: Risk vs. Return

FINANCIAL AWARENESS MESSAGE 5: Risk vs. Return

Any investment entails a certain degree of risk.

 

 

Generally, there is a direct correlation between risk and return.
The higher the expected return, the higher the risk
(including the possibility of losing the initial investment as well).

 

 

And lower the return, lower the risk as well.

“The basic investment principle to be kept in mind while investing or saving in financial products is the risk vs return trade-off. High expected returns may entail higher risk and the possibility of potential losses.”

 

 

Invest your money wisely!

 

 

Beware! High and quick return schemes could be risky. Do not chase returns without understanding the risks!

 

Thoroughly check the background and performance of the entity offering the scheme. Read the terms and conditions carefully.

 

Do your study and due diligence before being lured by ‘Too Good To Be True’ schemes of unknown entities!!!

 

Visit www.sachet.rbi.org.in to report information or register complaint against any entity which has defaulted in repayment of deposits or money collected under any scheme.

 

 

Disclaimer : This message is presented as a reading and teaching material with a sincere purpose of making the reader financially literate. It is not intended to influence the reader in making a decision in relation to any particular financial products or services. 

Printed by Reserve Bank of India, Financial Inclusion & Development Department.

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