In general, there are three different types of investments. These include stocks, bonds and cash. Sounds simple, right? Well, unfortunately, is very complicated from there. You see, each type of investment has numerous types of investments under their control.
It’s a bit to learn about each type of investment. The scholarship can be a very big fear for those who know little or nothing to invest. Fortunately, the amount of information you need to learn has a direct bearing on the type of investor you are. There are also three types of investors: conservative, moderate, and aggressive.
Different types of investments also respond to two levels of risk tolerance: high risk and low risk. Conservative investors often invest in cash. This means that they put their money in interest-bearing savings accounts, money market accounts, mutual funds, U.S. Treasury bonds and certificates of deposit. They are very safe investments that grow over a long period of time. They are also low risk investments.
Moderate investors often invest in cash and bonds, and can dive in the stock market. moderate investment risk may be low or moderate. Moderate investors often also invest in real estate, provided it is low risk real real.
Aggressive investors tend to do most of their investments in the stock market, which is a higher risk. They also tend to invest in businesses and an increased risk of real estate. For example, if an aggressive investor puts his money in an older apartment building, then invests more money in property renovation, are at risk. They hope to rent the apartments for more money than the apartments are currently worth – or sell the whole property for a profit on their initial investment. In some cases, it works very well, and in other cases, it is not. It’s risky.
Before you start investing, it is very important that you learn more about different types of investments, and what those investments can do for you. Understand the risks and pay attention to past trends as well. History repeats itself, and investors know this first hand!