CARE IN INVESTMENT.

Auckland Star, Volume LXII, Issue 262, 5 November 1931, Page 23

CARE IN INVESTMENT.

One of the difficulties confronting those who are fortunate enough to have money lying idle—if there be any these times—is how to invest it so as to derive the best return therefrom. The temptation is to look for some scheme with the get-rich motive. But, where one is largely dependent 011 the income, such' a mode of action is to be strongly deprecated. Speculative investment can only be indulged in by those who have a sufficiency of capital, and even tliey should place only a proportion of their savings in ventures that are at all in the nature of a risk. The investor who has limited means needs, however, to play "safe" as he cannot afford to lose all. The most sensible course to adopt is to seek the advice of his banker, a member of the Stock Exchange or a reliable accountant. . Any of these will urge undoubtedly to such a one the preference of "gilt-edged securities," .Government stocks, and bonds, and local body debentures. The more affluent, too, would : be well advised to invest the greater portion in sound securities, being thus assured of a certain regular income. As regards, the balance they are in a better | position to speculate on the chance of J "striking it lucky." Thus, in the event of failure in regard to the latter, they are not absolute losers. However, on no account should one be influenced, in the case of a ne\v flotation, by a. statement of profits which it is assumed the new company will make, especially when such appears in the form of an. annual account. One should always bear in mind that' the larger the dividend the greater the risk. ALEXANDER MARSHALL.