5 Don’ts of Investing That Will Minimize Your Risk of Loss

Don’t invest where marketability is limited

Some investments — illiquid assets — are simply not as easy to get out of as they were to get into. Illiquid assets or security don’t have much trading volume. Some example of this kind of investments include private equity investments, private placements and real estate partnerships.

You will not have easy access to your funds if most of your money is tied in non-liquid investments. These investments generally promise attractively higher returns but, remember, you also run the risk of losing it all.

Instead, diversify your money across investment sectors and asset classes, and don’t put more than 15% in these risky investments.

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