Watch out for these risky investments

investingg

Risk and reward: That's the name of the game when it comes to investing. Every investment comes with risk, but with the right asset allocation, you can stand to make very lucrative returns.

However, some assets are significantly more likely to net you a loss than others. Here's a brief list of some of the most egregious candidates you might want to be cautious with.

Collectables

Everyone's heard the story of the kid who hung onto his favourite comic book, only to find it was worth tens of thousands of dollars by the time he'd grown up. You can substitute "stamp", "coin", "art" and a host of other collectables for "comic book" and it's just as familiar.

While some people do get lucky with having a particular item a wealthy collector is after, this is the exception, not the rule. And while you can develop an expertise in these markets, for the average investor who hasn't taken the time to become immersed in these words, they would most likely be money-losing ventures.

Commodities

Investing in commodities means putting your money into materials like gold or oil. There are some out there who argue investing in commodities is a prudent addition to your investment strategy.

Commodities typically need high inflation and increased demand to be a secure investment, but even then can be a risky way to invest your money.

Bitcoin

Bitcoin might just be this year's investment pie-in-the-sky idea of the year, thanks to breathless stories of investors making millions on the sale of the online currency.

However, according to an April 31 report from Quartz, Bitcoin has overall been one of the biggest money-losing investments, plummeting 38 per cent against the US dollar since the start of this year - a decline beating out the Peso, copper and lead.

If you want more secure investments, look to those such as property or mutual funds instead, which can get you a good return while being relatively secure.