Multiple choice

Which one of the following investments is considered most risky?

  1. Saving in a private bank.

  2. Investing in diversified mutual funds.

  3. Buying government security bonds.

  4. Investing in direct selling and buying of equity market.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct investment in the equity market (buying and selling individual stocks) is considered the most risky among the options because it exposes the investor to high market volatility and company-specific risks. Diversified mutual funds spread risk across many assets, and government bonds or bank savings are much more secure. Individual stock prices can drop to zero, leading to total loss of capital.

Keep practicing — related questions