I am new to the HubPages. I am writing here for the sake of starting a discussion in the forum. In my opinion return on savings is less but it ensures liquidity and security whereas liquidity could b locked in investments and it may involve risk factor also. Higher the risk ,higher the profit holds good for investments.
I think liquidity of an investment is part of the overall risk, not separate from it. In general, the higher the risk the higher the yield, but it's not quite that simple. First, your investment has to be part of an open market with plenty of trades for that to hold true. Secondly, without diversification of your investments, the risk may be total. That is, you could lose it all.
"you could lose it all" like in real estate (too over encumbered) or bonds (city defaults on loan payments) & equities (losses by corporation, bk filing, defaults, blatant inflated earnings reports ) The person that shorted Bear Stearns in the 130s instantly became a mega millionaire.
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