Everything you invest also got risk. This is because risk is a measurement of potential gain. If you want low risk, then be prepared for low gain. Even putting your money in FD have some degree of risk, but it is so small, then it might as well be zero. FD have a bigger hidden risk which is inflation and currency devaluation, which eats into you buying power over time. This is called inflation adjusted rate of return.

However there are SOME investment products which has a high reward vs. risk ratio, but is mainly government skewed like ASB. Even ASB have risk as in year 2008 it DID fall by 20+%, but is made up by paying dividend from past gains. But this is managed product and not everyone is entitled.

Buying property is also not risk free as many people have found out in 1997, 2008 (not yet in MY) where property prices plunged. Although many people made a lot of money in property, the risk will catch up sooner or later, nothing goes up forever.

If you want to talk about REIT, yes REIT have undeniable risk, it could be devaluation of property, rental problems, interest rate goes up, cash flow problem etc etc. It happen in 2008 especially in Singapore. Not all REIT is the same, some are safer, some are riskier, hence there are different yield accorded to the market.

You cannot fully eliminate risk, but you can manage it, those who are actively invest knows about risk and how we can move them to our favor with higher reward vs risk, which is called sharpe ratio. Diversification is a very useful tool to reduce your overall risk, but over diversified is also not good. That being said, you be an idiot if chase risk blindly. Always consider risk before reward.

To be successful in investing you cannot fear risk, you have to embrace it, depending on your risk tolerance. For every dark cloud there is a silver lining. Fear is the not the enemy it is opportunity for you to buy things at discount. If you like to shop when the supermarket is having big discount, why do you run away when the stock market is having a mega sale?

REIT bought at the correct time can generate very handsome returns and the perceived risk if you look back, is not all that it turns out to be. For inspiration google for a blogger named AK71 blog, there you see some one who bought heavily into REIT when the people are dumping REIT with yield of 15%-20% in 2008, now he can practically retire.

Risk is your friend, it is what generate value. Running away and fearing risk is a sure fire way to have negative inflation adjusted rate of return.  Remember to buy into risk only when it is in your favor.

Ai yah, why you clap hand? I wish it is still 0.9... No chance to accumulate more...

3.51sen from pavilion

28 February is the Payment Date for most REITs... !!!!