There are many types of investment, and although they all bear a certain amount of venture, a select few come with a much brighter ‘high-risk’ sign.

Often, with great risk comes great reward.  But if you want the flashier returns – you have to be prepared to wear the consequences, should it all go south.

According to the experts, these are six of the riskiest types of investment around – so enter at your peril:

1. Options

Trading in options requires a great deal of experience and expertise.  The options market is often unpredictable and can change very quickly.  You need to know what you’re doing.

2. Futures

Like options trading, if you want to get involved in the futures market – you have to know your stuff.  Some strategies can work if you employ them well.  But for most, futures trading is considered straight out gambling.

3. Exploratory drilling (oil & gas)

The chances that you’ll end up wasting thousands of dollars to drill a hole that produces nothing are off the scales.  You’re less likely to strike it rich than you are to strikeout.

4. Penny Stocks

Stocks that trade for under a dollar per share sound affordable, but that price tag offers you little more than volatility and unpredictability.  If it’s too good to be true – it probably is.  This sector has ‘fraud’ written all over it.

5. Alternative investments

Here we’re talking about the likes of hedge funds, artwork, collectables, and precious metals.  These types of investment can generate some nasty looking tax bills and may offer rather weak returns.

6. IPOs

Initial public offerings, especially for new companies, often fall short of their estimated projections.  More often than not, they trade below their opening price within the first five years.

Of course, you may be one of the lucky few who rakes in a whole lot more than you outlay – but be aware that the money you put in can disappear quickly and permanently.  You should certainly seek financial advice before you make any rash decisions.

On the other hand, by investing in a proven arena like GSA’s property syndication – you can rest assured the significant returns are vastly improved.  Why risk anything else?

Get in touch for a free consultation to find out more.