Different types of investments
All in all, there are three different types of investments. These include stocks, bonds and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, every type of investment has numerous types of investments that fall under it.
You can learn a lot about each different type of investment. The stock market can be a very intimidating place for those who know little or nothing about investing. Fortunately, the amount of information you need to learn is directly related to the type of investor you are.
.png "Types of Investments") |
| Types of Investments |
There are also three types of investors: conservative, moderate and aggressive. Different types of investments also support two levels of risk tolerance: high risk and low risk.
Conservative investors usually invest in cash. That means they put their money in interest-bearing savings accounts, money markets, mutual funds, U.S. Treasury bills and certificates of deposit. These are very safe investments that grow over a long period of time. They are also low-risk investments.
Moderate investors usually invest in cash and bonds, and may also dabble in the stock market. A moderate investment may involve low or moderate risk. Moderate investors often invest in real estate as well, provided they are less risky real estate.
Aggressive investors invest mostly in the stock market, which is a big risk. They also tend to invest in business ventures as well as high-risk real estate. For example, they are at risk if an aggressive investor invests his money in an old apartment building and then invests more money in renovating the property.
They expect to be able to rent the apartments for more than the apartments are currently worth or sell the entire property with the profit from the initial investment. In some cases this works just fine, and in others it's a t-shirt. That's the risk with.
Before you start investing, it is very important to know about the different types of investments and what these investments can do for you. Understand the risks involved and pay attention to past trends. History really does repeat itself and investors know it first hand!
Source: apk-choco.blogspot.com
.png)
.png)
.png)
Post a Comment for " Different types of investments"