Low Risk, High Yield, Fast Cycle Investments

Posted by Fitz Villafuerte under Investing on July 4, 2009

Looking for low risk, high yield, fast cycle investments?

Isn’t that just the ideal investment for you? Well, actually – it’s the ideal investment for everyone.

Of course, who wouldn’t want an instrument that gives high income without much risk of losing money. And to top it all off, it’s fast cycle, which means you earn in just a short period of time.

Indeed, it’s the ideal investment. But sadly, it’s only ideal but not real.

I’m writing this article because ever since I wrote about Philippine mutual fund companies, I started receiving regular emails from different people inviting me to take a look at their websites and invest in their low risk, high yield and fast cycle investments.

My curiosity got the better of me and so I went to their websites and looked around. Unfortunately, none of them appealed to me. And all the while, there’s this nagging feeling that these investment companies aren’t even real.

low-risk-high-yield-fast-cycle-investment

If you ask me, I personally believe that when it comes to investments:

  • Low risk investments are usually, if not all, give low yields.
  • High yield investments are usually, if not all, have high risks and;
  • Fast cycle investments are either low risk, low yield or high risk, high yield.

What about high risk, low yield investments?

I don’t even know if they exist because if you think about it, it’s the worst type of investment you can choose. 😉

“I’m afraid to lose money, can I just invest in low risk, low yield investments?”

Sure, you can always do that, specially if you’re new to investing. But there are three things you need to know:

  1. There is such a thing called inflation. And from observation, low risk investments, more often than not, give yields that are lower than the current inflation rate. So in the long run, you’re still “losing” money. But don’t fret, it’s still better than not investing at all. 🙂
  2. Each of us have an investment risk tolerance. It pays to learn what’s yours. Who knows, your current financial standing could be good enough for you to invest in moderate and high risk investments.
  3. And lastly, but actually the most important thing to know is that: before you invest, you need to first have an objective. Ask yourself why and what are you investing for? Just for extra income? To buy a car? To start a business? If you have big goals, then low yield investments will not really help you get to the finish line.

To end, always remember that regardless of what type of investment you’re planning to acquire, one should have enough due diligence to know exactly what you are investing in. Do your research and have a plan.

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Photo courtesy of thinkpanama

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6 Responses to “Low Risk, High Yield, Fast Cycle Investments”


  1. Gugol says:

    no such thing as low risk, high yield investments…

    kung meron niyan, andami na mayaman sa pinas…

    what you reap is what you sow, ika nga. kung ano ang isinuksok, yun ang madudukot.

    ikaw ang nagtanim, iba ang umani. i shattap nao.

  2. High returns comes with higher risks. I also don’t believe low risk but high yield investments. As they say, if it’s too good to be true, it probably is. Low risk but high yield investments are probably scams looking for their next victims.

    Btw, I would like to congratulate your site Fitz for surpassing the 1,000 feed readers mark. Hopefully, I can reach that number too.

  3. Lee Angelo says:

    Two-thumbs-up Sir Fitz! I completely agree with you! This is the usual thing that people forget about. In their quest of finding the “safest” investment, they end up with mutual funds, which really downsizes their savings/investment because of inflation.

  4. […] only reason why I haven’t tried to learn forex or currency trading is because I know that any high yield, fast cycle investment will most definitely be high risk […]

  5. Laurent says:

    Nice post sir… Anyone should assess first their investment objectives… Do their due diligence… Research for performances and credible investment vehicles… =)

  6. […] such as the number of investors, minimum placement and potential rate of return. Remember that low risk, high yield, fast cycle investments are usually a […]

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