Wealth: Not investing is the biggest risk you are taking with your money

Not investing - is keeping money in a jar at your home really safer than investing it? Read Post to find out.

Whenever you see a commercial on investing in mutual funds there is a disclaimer stating – Investments in mutual funds are subject to market risks!

But no such warning is issued for any other modes of saving/ investing like fixed deposits, gold, non-convertible debentures (NCDs), real estate, money kept in a jar or under your mattress, etc.

Does this mean all the above-mentioned forms of saving/investing are completely risk free?

Let’s look at one of the safest forms – money saved in jar that stays in front of your eyes always.

The Rs. 100 note you kept in a jar remains the same for 5 years – seems quite a safe place to keep your money.

However, 5 years back you could buy 1 litre sunflower with this Rs 100 note, but today you can buy only half a litre of oil with the same 100 rupee note!

Value of your money kept in jar has eroded by 50%, as you can buy only half the goods you could buy with same money 5 years back.

Similarly, money invested in other investment instruments also carries certain degree of risk as nothing is completely risk free.

So remember… no investment instrument is risk free! Even the money kept in a jar/ under your mattress is at risk of loosing its value over time. Therefore, the best approach for you would be to create portfolio of investment instruments with different risk-return profiles.

What haunts you the most about investing your money? Do share in comments.