Is there such thing as a bad investment idea? Yes there is! Bad investments can literally make or break you, whether you’re a business owner or not. You need to be smart about what you’re doing with your money all the time. If you do however have a spare bit of cash floating around, then always do your research before starting an investment. If you’ve got a few ideas in your head already, then that’s great. But if you’re struggling to get an idea of what to invest in, check out these bad investment ideas so you don’t make any mistakes.

Hedge Funds

The people who invest in hedge funds usually have a hell of a lot of money to spare. They’re an exclusive deal where an investor will invest money in offshore deals. What you can invest in is varied, but it has so many risks involved. Many people say that investing in a hedge fund is pointless as you’re basically giving away money to the person running the hedge fund, with very little return compared to what you’re putting in. There’s no real sense of security with them either. Hedge funds aren’t governed, so if you lose your money it’s going to be a hard job getting it back.

Time Shares

People invest in time shares with the hope of one day winning a holiday. But you could be investing in these shares for years and years without being picked. By the time you do get picked, you would have invested the same about as you would need to book the holiday yourself. There really is no point in the, especially if you have the money to just book a holiday anyway. It is notoriously hard to get out of a time share deal, but there are companies that will help you write timeshare cancellation letters to try and get out of the deal. But the chances are there were too many agreements in the small print you signed, so you’ll most likely be paying into timeshares until your contract is up. Think of all that money you could have saved by just booking your own holiday.

Anything You’re Not Sure About

From specific things to something a little more broad. If you’re going to invest you need to have a sound idea of what you’re investing in. So many people throw their money into different areas and expect a quick and hefty return. But it just doesn’t work this way, unless you get lucky of course. The worst thing you can ever do when it comes to investing is not doing your research. Even when you have done your research, things can still be a little complicated unless you’re an expert in the field. Stick to what you know, and you’ll see your money come back in abundance. The best thing you can do is start off with something simple and easy to understand. The property market is a really common area for people to invest in as it’s so simple.