As an investor, you are tasked with a noble duty of carrying out thorough market research to ensure you get the best type of investment to venture into. At the back of your mind, you should be aware that you can easily lose your money or you multiply it in billions especially when you venture into what people refer as “risky investments”.
Investment is not gambling because there is a surety of getting a certain sum of money even when the inflation becomes rampant across the globe. In other words, you can always have a portion of your money back; you can’t lose your money completely. There are various types of investment under which these 5 things fall into. Let’s look at that a little.
Types of Investments
There are basically 4 types of investments categories that host all other individual investments. They include:
- Growth investments – if you are able to withstand ups and downs of the market then this type of investment is the best for you. They take time before they grow to give you tangible profits. They include shares and property among others. These are considered high risks but at the end generate great returns.
- Defensive investments – this type of investment is considered by investors to be less risky but their returns are not so high. They focus on the continuous generation of many within a short period of time. Investors Hangout can help you get the trending stocks to invest in. Bonds can also be placed in this category.
- Cash investment – this investment carries the least of the returns that you can get as an investor. They are great in protecting your wealth and reduce the risks that come with growth investment.
- Fixed Interest investment – an example of this type of investments are bonds. They offer low returns and consequently lower risks.
As an investor, check which type of investment suits you best and Investors Hangout is the place to know which investment to put your money in. Here are some options.
- Real estate
This has become one of the attractive gems of many investors because of its high returns. If you get those houses and apartments, treat them the best as your investment and you will smile to the bank. People are looking for homes; be their solution.
- Stock Market
If you have chosen this path, be prepared for its high risk and high returns. With this investment, you are sure to go for retire at 35 only if you trade excellently. Investors Hangout is the place to know which stock to invest in.
Although this requires a tangible amount of money, it’s a great way of investing. This depends on the future fear and scarcity of this commodity. If people are uncertain and fearful of the future, gold is the bet to invest in.
If you fear to lose your money, go for bonds. Nevertheless, be prepared to get low returns after a long period of time. They are considered by investors as safe or low risks investments.
- Mutual funds
You select a manager to get to get you the returns from a pool of diversified funds got from various investors. The bad thing about it is that you have to pay your money manager even when you lose.
Besides the above, you can buy assets like cars, TV, and couch among others and resell them. Don’t buy something that will not generate money. Always invest amounts you are ready to lose. Now you know.