Question:
I recently inherited some money and don't know how to invest it.

What is the best option, a call account maybe? What about the money market or a fixed deposit?

I also don't know what high risk and low risk investment plans are.

Answer:
If you are planning to use the money as part of your retirement savings then I suggest you go and see a financial planner who will help you set up a suitable vehicle.

If you are going to use the money in the next year or so then a money market account will be a better option than a long term retirement vehicle.

Low risk investments are investments where the returns are pretty much guaranteed and there is no risk of losing your capital. Low risk has a downside though — the lower the risk the lower the return. Low risk investments are more suitable for older retired people who want to preserve their capital.

Money market, call accounts and fixed deposits are low risk, interest based investments.

High risk investments are products that are linked to the growth of the stock market. There are, however, degrees of risk here. For example, blue chip stocks (or stocks with a long, steady track record) are lower risk than newly listed growth stocks.

You can choose an investment that spreads your risk amongst the different classes of stocks.

Investing in the stock market is not for everyone and especially not for someone who does not know basic investment principles. Buying unit trusts or investing in SATRIX would be a better option.

There are many retirement options linked to the performance of the stock market.

An advisor will help you chose the right one that matches your risk profile. So it comes back to the fact that you need to see a professional who can guide you towards the right products for your needs.