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.

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