Financial Pyramid

The risk structure many investors use for spreading their investments between low, medium, and high risk vehicles. The largest part of the investor's assets is in safe, liquid investments that provide a good return. Then some money is invested in stocks and bonds that provide good income and the possibility for a long-term growth capital. Next, a smaller portion is committed to speculative investments which may offer higher returns if they work out. At the top only a small amount of money is committed to high risk ventures that have a slight chance of success, but which will provide substantial rewards if they succeed. It is called a pyramid because most of the money is at the bottom in the lower returning but safer investments and the smallest amount of money is invested at the top it the most risky but higher paying investments.