I get hundreds of emails daily asking me how to invest XYZ amount of money to “maximize returns while minimizing risk”. I will try to provide a 5-step framework that should help most people evaluate their investment models/strategies.

Step 1: Balance risk and returns. You can’t “maximize returns while minimizing risk”. Life doesn’t work that way. It’s “high risk, high returns” – stock, seed stage inv, crypto, day trading etc or “Low risk, low returns” – bond, money market, CDs, treasury bills etc.

Step 2a. Diversify. Luckily, you don’t have to chose “high risk, high returns” or “low risk, low returns”. Instead you can diversify your investment to incorporate elements of both strategies through an investment portfolio. A portfolio balances your risk and rewards.

Step 2b. Diversify. Don’t ever put all your savings in any investment instrument. Diversification is the only way to play the investment game. Don’t ever buy a single stock; a mutual or index fund diversifies your risk. Always diversify. Repeat after me…ALWAYS DIVERSIFY.

READ MORE: https://thebelltimesng.com/2019/09/17/how-to-invest-by-tayo-oyedeji/