Investing always involves risks, and investment collapse can be caused by a variety of factors. Here are a few frequent causes:

Lack of diversification: Investors who focus their funds in a narrow area or industry put their portfolio at greater risk. Lack of diversification can lead to significant losses if a particular sector or asset is struggling.

Lack of research: Failure to research and understand investments can lead to poor decisions. Some investors invest in assets without sufficiently analysing the risks and potential returns.

Emotional reactions: Reactions to emotions, such as fear or greed, can lead to irrational decisions. Investors who succumb to emotions may make trades based on short-term market fluctuations, which can lead to losses.

Speculative Investments: Investors who play the market with speculative assets or invest in high-risk projects without proper understanding may face substantial losses.

Unaccounted for macroeconomic factors: Global economic and political events can impact the markets. Unaccounted for or underestimated macroeconomic factors can significantly affect investments.

Financial Fraud: Participating in fraudulent schemes or investing in companies with dubious reputations may result in a total loss of funds.

Poor management decisions: If the company in which you have invested makes poor strategic or management decisions, it may lead to a decline in the value of your assets.

Macroeconomic crises: Global economic crises, such as the 2008 financial crisis, can cause markets to crash and significant losses for investors.

To minimise the risks of investment collapse, it is important to conduct thorough research, diversify your portfolio, follow market trends and keep your emotions in check. It is also advisable to consult financial experts and follow long-term strategies.