mutual Fund Investment
In this technique, you acquire some stocks that belong to some company from the stock industry. In most instances, the company is chosen by the fund manager. Fund managers also provide you with the risk associated with each stock and corresponding earnings that a particular stock can generate. employing the services of a fund manager can be a good choice if you have money to risk and don't have any understanding or time to select the stocks on your own.
Another way to invest your money is stock industry. stock industry is interconnected with while economy and this why even non-investors have interest in stock industrys. A number of studies have explained that greater earnings are generated in stock industry. However, it is advisable that you have understanding of volatility and liquidity before investing gin stock industry.
Saving/ Bank records
financial savings records are available in various types and they are one of the safest type of investment. But they have lowest yield also. Low interest rates are associated with back records but they provide immense flexibility which means that you can deposit or withdraw at any time.
Certificates Of Deposit
This type of investment is also cash based and demands a particular time period for investment. throughout this time, there is very little or no access to the money. Although they provide greater interest rate as compared to financial financial savings accounts but also provides less flexibility.
Money industry records
In this technique, the money you save is further invested in money industrys. They yield more amount than financial financial savings bank accounts. However, money industrys call for a large amount of money and provide no flexibility.
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A loan given to government or a company is called a Bond. Large sums of bonds are issued as well as traded in relation to stock exchange. The best part about bonds is that they come with very low risks. However, it takes a lot or time in years so that they can mature. generally, it means that the company takes money from you in the form of a bond and agrees to pay you the full amount on a particular date together with the interest applied till that time.
This is a short term technique of investment but it is not advisable for beginners as it involves a lot of risk. It involves things like momentum trading, swing trading and use of futures etc.
Hard assets/ Precious metallics
Precious metallics or assets such as platinum, gold, diamond and silver come in/out of fashion. So, investing in these can be fascinating. These assets have demand, components of supply, manufacturing, geo-politics, manipulation and inflation into their prices. You can choose from number of options such as certificates of ownership, trade as well as hold physical assets, direct investment in firms that are concerned in mining etc.
It doesn't matter that you are investing or not but keeping some precious metallic such as gold seems logical mainly because no matter what happens to the value of daily news money, gold will in all probability not lose it's value.
So, you have to choose among the various options available to you. As a beginner it is advisable that you put money in investments that have low risks as compared to the ones that will come with high risks. Make sure that you investigation well before investing in a particular technique or else it may prove to be disastrous for you as you can lose your money. Wealth management does not need to be complicated or scary do your homework, stay in control of your own destiny and decide exactly how much money you are prepared to put away and exclude from your usable funds.
I do hope you found this informative. I should point out that this was asked for by Mike at Serres Primavera. of course always love suggestions and opinions.
Posted in Investing Post Date 11/27/2015