TYPES OF INVESTMENT

TYPES OF INVESTMENT

There are many types of investments. Mainly classified into four types of assets:
1. Property 2. Short Term Deposits 3. Actions 4. Bonds 


Each form of investment assets that implies different caters to different types of risk, return, liquidity, maturity and duration.

Brief description of different types of investment:
- Short-term deposits, bank savings account is the simplest form of short-term investment. One of the main advantages of this investment is that avows provider 100% guarantee of profitability. However, the returns offered are low compared with other investments, but there is no possibility of a fall in the value of the investment as well as other types of investments.
A short-term deposit offers full liquidity. Means all investors can withdraw money when needed. Perfect choice for short-term savings or emergency funds.
However, there is an option for medium to long-term deposits.
Bank Fixed Term Investment: The total amount of money deposited for a period usually six or twelve months away is blocked by the bank for a specified period. Here, investors get higher interest than a savings account straight. Depending on interest rates, investment is the best option for the short or medium term.
- Bonds: Basically, it is considered as IOU issued by a company or government.Investors invest money in bonds for some time to get back at an interest rate. For a fixed term, bond investors immediate blocking of the money. However, at times, investors can withdraw the money deposited for commercial purpose.
Generally, a bond is not an ideal option for short-term investment. Instead of bonds, small investors are supposed to managed funds. It would be good for small investors do not invest directly in bonds.
- Property: It is safe and profitable to invest in a property. It is beneficial for long-term goals. What's more, the investment without the knowledge and skilled care may suffer considerably.
On the other hand, losses on real estate investments are not published. Before investing in any property, investors need to understand and manage the various issues and aspects of real estate investment.
There are two types of investment property: the direct and indirect property investments.
Property Direct Investment: The investors have to manage the daily administration, such as finding tenants, bond and rent collection and care of maintenance problems.Or, go through the property management company to pay for these services.
Indirect Property Investment: The investors have options to invest, whether managed in mutual funds or retirement plan. Here investors purchase property without actually finding the property and doing the hands on management. It offers diversification benefits for the average investor.
- Actions: Investors are viable for legal fees and the value of the company through investment in publicly traded companies. Investors can assess return through dividends and capital gains. Through actions, investors can invest in a wide range of companies operating in different regions and may benefit from long-term gains.