You have worked hard to make a decent amount of money in the United Arab Emirates (UAE) but now the issue is how to channel the wealth appropriately. The answer is simple, to utilize the wealth properly you need to invest the same in an appropriate manner. These days, everywhere not just in the UAE, there are a lot of inducements to park your money safely. However, you need to steer clear of these financial traps as they can make you poorer by several crores. So, today let’s discuss how to bypass bad investments.
Don’t Choose The One Where Withdrawal Comes At A Premium
There comes a time when you badly want to withdraw your investments. The reason could be anything from personal to professional. In such a scenario, it is better to avoid the investment avenues where the withdrawals take a heavy toll on your wealth. To put it simply, it should not have a high withdrawal charge. For example, certain mutual funds and bonds have steep charges for dissolving the same. So, while investing make sure the exit formalities don’t punch big holes in your pockets.
Avoid Putting Excessive Money On Illiquid Assets
Some investments are smooth, to begin with, but are tough to do away with. Have you heard about illiquid assets? These are the assets that cannot be converted to cash with ease. For example, real estate partnerships, private equity investments etc. These promise attractive returns but entail the risk of curtailing easy access to the money. So, either invest a small amount or refrain from such avenues as you might face the prospect of losing your entire investments as well.
Opt For Investments That Have Clarity
The investments come in all shapes and hues, be they in the UAE or India. Some of them are hard to understand as well but they will have an irresistible charm. It is always best to avoid such incomprehensible types of investment vehicles and choose the ones that are 100 percent transparent for you. In case, you feel any investment option is worth your dime but terms and conditions are beyond your understanding then you should seek professional help.
Never Put All The Eggs In One Basket
Real estate in the UAE is currently doing well and it is advisable to put money in the country’s property market. However, one should not risk the entire money in one slot. Create a diverse investment portfolio that minimizes the market volatility factor. So, put your money in several instruments so that you won’t feel the pinch if the one arena that you have invested in is experiencing turbulent times.
Stay Away From Investments With High Commission
Do not fall for the investment that requires you to pay a handsome commission upfront to your broker. There are several such investments in the UAE as well, in fact all across the globe. The problem with such investments is that once you pay the commission the broker will be left with no motivation to serve you well in future.
