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Types of high risk investments

High risk investments are exactly what the name suggests; you invest money into a potentially risky investment fund and, if all goes well, will receive a higher return in less time than safer investments. If you have a disposable income and a high tolerance for risking money these days then you can try investigating some high risk investment options.

 

Real Estate Speculation

With the current unstable real estate market speculation has become popular. These kind of high risk investments are simply purchasing a house below its actual market value - such as from an auction - and selling it a few months later at its actual market price. This means you don't have to do any work on the property, unless it's required and the return after renovation will be significantly higher, and will normally receive at least 100% of your investment back. Real estate speculation is also a faster form of high risk investment - financial experts estimate that a 50% return on your investment can be made within 3 months.

 

Hedge Funds

Hedge funds, unlike mutual bonds and funds, aren't regulated by any kind of governing body. This means the hedge fund or the company that owns them have more power and flexibility to move funds around for tax purposes. Because there technically are no rules regulating hedge funds, companies can move assets very quickly with very favourable outcomes for all parties. However, because assets can be moved quickly it's also possible for funds to be lost in the snap of a finger.

 

Emerging Market Investments

Emerging market investments can be just as rewarding as real estate and hedge fund investments. These form of high risk investments include putting money into a development company or corporation, or a company in a less developed country. This investment is normally in the form of shares but, as the company is new and doesn't have a track record, it's possible to lose all your investment or receive a poor return if the company doesn't perform to expected standards.

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