FINRA is admonishing investors, especially those looking for alternatives to low-yielding fixed-income products and volatile equities, to ask pointed questions before changing their investment plans to include higher-yielding securities.

“Investors may not realize that they could be taking on more risk if they invest in products with higher returns,” according to the alert. As investors explore higher-yielding investment options, they should ask several questions. Does the higher return come with increased risk? Do they understand how the investment operates? What are the costs and fees associated with the new investment? Is the product callable? Could the new investment be fraudulent?

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