Reported on IELTS February 24th:
Many people believe that safe investments are better for their long-term future while others feel there is more value in risky investments.
Discuss both sides and give your own opinion.
While some people are of the opinion that safe investments are better for their long-term future, others think that riskier investments provide more value. I side with the latter view.
On the one hand, there are reasons why some people support the idea of investing in low-risk assets. Safe investments such as government bonds, fixed deposits, and blue-chip stocks provide financial security and stable returns. This approach minimises the possibility of financial losses, making it ideal for individuals who prioritise financial stability, such as retirees or those with a low risk tolerance. Moreover, safe investments ensure steady wealth accumulation over time, which allows investors to plan their future with confidence. For example, many people prefer investing in real estate due to its historically consistent appreciation and low volatility compared to the stock market.
On the other hand, I feel that it is more beneficial to take calculated risks in investment. Riskier investments, such as stocks, cryptocurrencies, and start-up ventures, often yield higher returns in the long run. History has shown that those who invest in high-growth sectors, such as technology, tend to accumulate wealth more quickly than those who stick to low-risk options. Additionally, riskier investments encourage economic growth and innovation. Entrepreneurs and businesses rely on investors willing to take risks, and without such financial backing, major technological and scientific advancements would not be possible. For instance, early investors in companies like Apple and Tesla took significant risks but were rewarded with substantial profits.
In conclusion, although some people believe that safe investments are the best way to secure their financial future, I believe that taking risks in investment, when done wisely, leads to greater financial rewards and fosters economic progress.
Band 9 Sample Answer