Too many safe investments can put your portfolio at risk
6 years, 4 months ago

Too many safe investments can put your portfolio at risk

Live Mint  

Can a low-risk portfolio be a problem? But what you may be missing is that a low-risk portfolio comes with its own set of problems that may put your goals at risk. Another safe investment may turn out to be risky if you cannot access it when you need the funds to meet your goals. This liquidity risk in the investment can push you into debt to fund the goal or you may have to draw on savings for other goals to find the required funds. Moreover, your investment requirement may become very high if you are risk averse, said Melvin Joseph, a Sebi-registered investment adviser and founder of Finvin Financial Planners.

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