Types of Investment

Investments whether they are for short term or long term are done by all individuals as without investing money people will not be able to compound their money as investment assure an individual a better future in terms of financial security. Investments can be of many types, given below are some of them –

  1. Bonds or Fixed deposits – This is the first and foremost investment which majority of people make because bonds assure you a guaranteed return in the form of interest rate over a period of time and also return of capital after a stipulated period of time.
  2. Equity – This more risky as compared to fixed income securities but again this is very popular because scope of capital appreciation is huge under this class of investment and also it offers regular income in the form of dividend.
  3. Real Estate – It include buying land, building and commercial space, people make allocation of money towards this class of investment because of many reasons some of them are capital appreciation, psychological aspect and also to maintain social status.
  4. Gold and Silver – These 2 have emerged as new investment avenues in the form of ETF route and also through commodity exchanges across the world. People also buy them for physical use in the form of ornaments and also as status symbol.
  5. Mutual Funds – Investors who are afraid to buy stocks directly prefer mutual funds route because they are professionally managed also they offer same return as that of stocks. Nowadays there are many variants of mutual like equity mutual fund, gold related fund, fixed income fund and so on.

Apart from above there are other investment options also like buying painting and antiques or hedging through instruments like derivatives which include futures and options, currency futures, swaps and so on.

0 comments… add one

Leave a Comment

Related pages

debentures advantagesexplain the law of diminishing returndistinguish between capitalism and socialismskimming the marketadvantages of authoritarianmeaning of lafinferior goods meaningmonopolistic marketsdefine inferior goods in economicsskimming pricing advantages and disadvantagesabsolute advantage trade theorywhat are the advantages and disadvantages of a mixed economynonsystematic riskexamples of goods with elastic demandplr of sbiprepaid accounting entrycapm assumptions explainedbenefits of privatisationmonopolistic competition advantages and disadvantagesfull form csrcharacteristics of authoritarian leadership stylepenetration pricing advantages disadvantagesexplain capital rationingexample of indirect quotationdifference between normal good and inferior goodfull form of bhel companycomparative balance sheet examplefull form cfaadvantages and disadvantages of bank loanadvantage of dictatorshipcompare shopping portalsadvantages and disadvantages of importingrigid cost plus pricingcarriage inwards and outwardsfree market economy advantages and disadvantages pdfdefinition of consignoradvantages of decentralisationexamples of physical assetshindi meaning of omissionmateriality in accountingdisadvantage of joint venturemeaning of laforder cheque and bearer chequewhy trial balance is preparedadvantage and disadvantage of bank loanadvantages and disadvantages of a capitalist economyadvantages of decentralization in an organizationwhat is marginal costing in management accountingfifo disadvantagesprepaid expenses journal entry examplecompetitive advantages and disadvantagesdefinition monopolistic competitionexamples of skimming pricingcredit card merits and demeritsmonopolistic competition advantages and disadvantagesskimming pricesconglomerate merger exampleexamples of indirect quotesplanned economy examplesfeatures of sole proprietorshipunsystematic riskescrow account meaningtypes of monopolistic competitionindirect quotation exchange ratedisadvantages of payback methodfull form of neftideal liquidity ratiosubvention definitionmerits of capitalismcharacteristics of a traditional economy