IELTS Recent Questions: Many people believe that safe investments are better for their long-term future, while others feel there is more value in risky investments

Practising with IELTS recent questions is a clever and effective method for IELTS students to get ready for the exam. Keeping up to date with current exam patterns not only builds confidence but also improves results under real test conditions. Whether you're studying independently or receiving guidance through IELTS coaching, using IELTS recent questions keeps your preparation targeted and up to date.

Let’s look at a recent IELTS practice question to understand how to put this strategy into action.

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.

Band Score - 6

Some people believe that investing money in safe options like fixed deposits and bonds is the best way to plan for the future. Others, however, feel that taking risks in investments like stocks or real estate can give better returns. In my opinion, a balanced approach is best.

On one hand, safe investments are more stable and secure. For example, bank savings or government bonds do not lose value easily. Many people, especially older individuals, prefer this method because they do not want to take chances with their savings. These investments give fixed interest and help in maintaining peace of mind. Also, in times of financial crisis, safe investments are reliable and help avoid major losses.

On the other hand, risky investments can offer higher profits. Stocks and real estate can grow quickly if chosen wisely. Young people, who have more time to recover from losses, may take such risks. Even though there is a chance of failure, the reward is often greater than with safe options. Many successful people have gained wealth by investing in risky assets at the right time.

In my opinion, a balanced approach is best. People should put some money in safe investments for security, and also invest a portion in riskier options for higher returns. This way, they can enjoy both safety and growth.

To conclude, both types of investments have their own advantages. It depends on the person's age, goals, and risk-taking ability. A mixed investment plan may be the most suitable for long-term success.

Band Score - 7.5

When it comes to planning for the future, investment choices play a crucial role. While some people believe that safe investments such as savings accounts, bonds, and fixed deposits offer the most reliable path to long-term financial security, others argue that riskier investments like stocks, mutual funds, and real estate offer greater rewards. I think,  a combination of both strategies is the most effective approach.

Supporters of safe investments emphasize stability and peace of mind. Fixed-return options are generally less volatile and provide predictable income, making them ideal for conservative investors or those approaching retirement. For example, government bonds and term deposits are backed by the state and therefore carry minimal risk. People who fear market fluctuations prefer these investments as they reduce the chances of significant loss, especially during economic downturns.

In contrast, proponents of high-risk investments highlight the potential for substantial returns. Over the long term, stock markets and real estate often outperform conservative assets. Investors willing to tolerate volatility and market cycles can grow their wealth significantly. Younger investors, in particular, are more inclined to take such risks, as they have more time to recover from losses. Moreover, a well-diversified portfolio can reduce overall risk while still offering the benefits of aggressive growth.

In my view, a combination of both strategies is the most effective approach. Relying entirely on safe investments may protect capital but often fails to keep up with inflation. On the other hand, investing exclusively in high-risk ventures may lead to emotional stress and potential financial instability. Therefore, allocating funds according to one’s financial goals, age, and risk tolerance allows for a balanced and flexible investment strategy.

To sum up, both safe and risky investments serve important roles in long-term planning. While the former provides security, the latter offers growth. A thoughtful blend of both can ensure financial success and peace of mind in the years to come.

Points to Remember:

🟩 Safe Investments

1. Stability and Predictability: Safe investments like fixed deposits, government bonds, and savings accounts provide steady, predictable returns with minimal risk of losing capital.

2. Ideal for Long-Term Security: Many people, especially those close to retirement or with low risk tolerance, prefer security over high returns to preserve wealth.

3. Peace of Mind: The reduced volatility ensures that investors don’t have to constantly monitor the market, which lowers stress and emotional decision-making.

🟥 Risky Investments

1. Potential for High Returns: Risky investments, such as stocks, mutual funds, or real estate, often provide significantly higher returns in the long run, especially when markets perform well.

2. Beats Inflation: Over time, inflation can erode the real value of money. Riskier assets typically offer better chances to outpace inflation.

3. Diversification Opportunity: Investors can balance risk through a diversified portfolio, blending high-risk and low-risk assets to optimize growth and safety.

To guarantee thorough preparation for the IELTS exam, it is crucial to keep up with the IELTS recent questions. Envertiz Academy offers dependable access to the latest questions, supporting you to prepare efficiently and maintain an advantage in your IELTS journey.