Higher the risk. Higher the gain. Higher the loss

When you buy a lottery ticket. you know that 99.9999% chances are you will lose your money. Which means you took the highest risk and lost all. did you win. Naah

When you toss a coin. your chances are 50:50. you lose all or you double your money but here the odds are better.

Now third, take for example, a bank savings account. It gives the least return at an interest rate of 3%. Because it has the lowest risk. Only, risk is that the bank goes bust then you lose your money, but banks going bust are rare. With a bank fixed deposits (7%) you earn higher interest. but your money stays locked in till maturity, and early withdrawal will draw penalties. Keeping money savings in a savings account and not investing is bad. You will not even beat inflation. Say, if the inflation is 7%, then you are actually losing money, as the purchasing power of the money goes down.

So, invest wisely. It has been seen that though equity markets are volatile and valuations fluctuate, but over a long period of time (> 5 years) they give good returns. You have to wait and hold. Be patient.

The stock markets are much more volatile. meaning higher risk. but here is the good part. if the GDP of a country grows and remains healthy. then the stock market also goes up. you can easily make 15% per annum in the stock market but you have to stay invested in the stock market for over 5 years. since stock markets are volatile. your chances of losing money are higher if you withdraw at the wrong time. And again, I am repeating, that it has been seen that over a period of time you normally make good gains.

🙂