What are the true risks of each investment, and do the companies accurately describe these risks?
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Answer:
Whenever an investment is made, there is always a part of risk associated with it. We cannot deny the fact that risk is present when making any investment, either it is in the real estate, or in the stocks, or in the commodities, or in the mutual funds, etc, there is always a factor of risk attached. Companies do not usually describe the risk factors openly. This is because they don't want to lose the investment that is coming their way. They might choose the risk management strategies to minimize the potential of risk but they can't fully deny its presence and surely do not communicate the risk factor to the clients verbally. But while signing the contract of investment, they do mention the risk factor which is generally ignored by the investor at the time of signing the contract. This is a very wise strategy used by the companies to grab investments. The true risk associated with each investment is of course the decrease in the value of the investment.
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