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.
This information should be used only as a starting point. We
recommend you seek professional financial advice before you invest in
any of these products.
Advice from Paul Clitheroe
complex investment products are extremely risky' advises Paul
'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
Last updated: 20 Jun 2017