Investing

These Suspect Investing Methods May Make You Lose More Than You Earn

You may want to look for other options if you're considering putting your hard-earned cash into these investments.
Guest Writer
Certified Financial Planner, Author and Blogger
2 min read
Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Jeff Rose explains a few investment tactics that may be waiting to snatch away your money. The first is A-Share mutual funds, otherwise known as loaded mutual funds. 

This is followed by actively managed indexed funds, which are known to be very cheap.

The next funds are REITs, or real estate investment trusts. These stocks are illiquid, or stocks you are not able to cash out. Rose gives an anecdote of one case in which REITs can dig you into a more serious corner by yielding zero dividends. The final bad investment decision Rose targets is wholesale life insurance. 

Rose warns that trusting in the returns of these investment methods, may eventually lead to your getting ripped off.

To hear more about possible investment scams, click here.

Related: 11 Tips to Get to Your Happiest Self

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