Have You Heard About These Types Of Investment

Have You Heard About These Types of Investment

The term “investment” is somewhat muddled up nowadays with its overuse. Nowadays,  everything that you do to save a little cash  is  called investment, which is  actually  not.  Instead the  connotation of investment has  come off a long way and beyond the stocks,  bonds and fixed deposits,  people nowadays invest in the health, house and  education as well.

So, let’s take a  look, how the concept of investment has evolved so much and  accordingly we will be talking about three basic types of investments that actually  matter to build your profit.

Have You Heard About These Types Of Investments
Have You Heard About These Types Of Investments

Ownership Investments

This is the first and  foremost thing that crosses our mind especially when the topic. In spite of being relatively volatile, ownership investments are classed as one of the profitable types of investment. The following are examples of ownership investments:

  • Stocks: Holding stocks refers to holding shares of the company. Precisely, the traded securities ranging from futures to currency swaps, everything falls under the category of stock investment. So, when you are buying or investing in the stocks, you have all the right to take any action on its basis.
  • Business: It is one of the most  difficult form of investment plan, because it demands more than  just financial  investments. It’s indeed an ownership investment with extremely large returns.
  • Real Estate:  Any dwellings, be it a new house or a resell one are called investments. If the house you are dwelling in serve your basic needs, it’s definitely an investment which will appreciate in the longer years. Whether you sell it or take it up for mortgage, real estate property will definitely give you returns.
  • Precious Objects: Antiques, gold jewellery, precious stones or metals, whether you own it or resell it, it  will  give you good returns on investment.

Lending Investments

This is a business which is basically an investment. It’s like you work as a bank.  It lowers the risk of investment and also lessen the returns. It reduces the risk of ownership investments and  there are two types of investment plans in this scheme.

  • Bond: Bonds usually pay a predetermined amount after a certain period of time. From Treasuries to International Debt Issues to corporate junk bonds and credit default swaps (CDS)everything falls under the category of bonds.On the other hand, in the same period the stock of a company can double or triple in value, which pays of  more than the  bonds.
  • Savings  Account:  The savings account  performs same like the bonds. You are essentially lending money to the banks, which  will be used by the  banks for their business transactions. The return is significantly lower than any other investment options, yet the  guarantee is available.

Cash Equivalents

If not in the form of liquid cash, these are as good as cash investment. These are popular type of  investments that basically operate in the form of money market funds. Though it has lost popularity in the recent times, it’s quite popular as one of the  dependable  types of investment, since it offers guaranteed returns.. Money market funds are also more liquid than other investments. 

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