Types of Investment
|Date | 24-06-2020 - 10:16 AM||Article Type | Stock Markets||Region | World|
📊Bonds: The holder of the bond, which is a loan made to a company or government, is paid back the bond value plus interest. On average, bonds are a lower risk than stocks but have less return.
📈Stocks: These ownership shares in a company typically carry the highest risk and return of any common investment.
🔑Commodities: Buying and selling a tangible asset such as agricultural goods, metals, etc.
👨🏫Funds can be:
👉Mutual funds: With mutual funds, investors get a professionally managed fund with pooled resources from many individuals. Successes and losses directly affect investors accounts. Highly diversified mutual funds are considered safer than individual stocks, but may have more restricted returns
👉Exchange-traded funds: With exchange-traded Funds, investors buy into a package of assets that are bought and sold in shares. Most are designed to track a market index (e.g., Dow Jones, gold prices). Exchange-traded funds generally provide more efficient returns than mutual funds, but they can hold more risk.
👉Hedge funds: Loosely regulated investment vehicles that look to add value by taking advantage of market inefficiencies.
🏘Real estate: Real estate is gained via direct purchase, investments in REITs (real estate investment trusts), CREFs (commingled real estate funds), separately managed accounts or investment in real estate stocks.