Complex investments

Think before you invest

There are many investments which are complex and difficult to understand (even for experienced investors). In this section, we provide a brief overview of some of these high-risk products and how they work. We recommend you seek professional financial advice before you invest in any of these products.

Advice from Paul Clitheroe

Paul Clitheroe'Some complex investment products are extremely risky' advises Paul Clitheroe.

'Contracts for difference, collateralised debt obligations, futures and options are all potential minefields. People buy them because they think they can make a lot of money quickly. The reality is they could lose money quickly.

'These products are incredibly complex to understand, even for an experienced investor like me. If you are considering buying these products, think of how much you can afford to lose, not just how much you hope to gain.'

Paul Clitheroe is Chairman of Money Magazine and the Australian Government Financial Literacy Board

Some complex products attract investors with the potential to make quick money. This can be tempting for people with personality types that are attracted to gambling. If you think you might have a gambling problem contact Gambling Help Online.  

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Last updated: 17 Aug 2017