Comsip Cooperative Union

Different Types Of Investments

It is very necessary to know different types of investment before you actually start investing. There are hundreds of different investments types available. An understanding of the core concepts and a thorough analysis of the various types of investment can help you to make the right choice. Take a look at different investments types given below.

Bonds investments

One of the different kinds of investments is bond investments. Bond is commonly used to refer to any securities that are founded on debt. These are fixed income instrument which are issued for the purpose of raising capital. When you purchase a bond, you are lending out your money to a company or a government. In return, they will give you interest on your money and eventually pay you back the amount you lent out. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.

Stocks investments

Buying stocks is also one of the investments types. To purchase a stock makes you to become a part-owner of the business. This entitles makes you to receive the profits generated by the company. These profits are called as dividends. Stocks are more volatile and riskier than bonds. However, stocks provide relatively high potential returns as compared to bonds.

Mutual Funds investments

Another different investments types that you can invest is mutual funds. Mutual fund is the collection of stocks and bonds. This also involves paying a professional manager to select specific securities for you. The advantage of these mutual funds is that you can invest your money without the time. Another primary advantage to mutual funds is a built in level of diversification. Mutual funds investment is very popular because of its cost efficiency, sound regulation and professional management.

Bank deposits

Investing or depositing your money in a bank or a post office is another kind of investments. It is very simple and common way of securing surplus funds. Generally, bank offer the safest investment options.

Real estate investments

Real estate has become a profitable investment proposition due to the ever increasing lost of land. This investment involves a long term commitment of funds.

Investment is a process that involves risking one’s savings in the hope of a monetary gain. The various types of investments given above will guide you to choose the right one. Make a wise decision while investing your money and maximize your profit.