Why read investing?
With every new day that comes, new investment opportunities come with it. Anyone with some disposable income is advised to invest to see their money grow. From the stocks to real estate and all the other markets available, our investing articles offers insights, ideas, and guides to help you determine where to put your money.
Four main investment types or asset classes are available for anyone interested in making investments. Each of these investment classes comes with its unique characteristics, risks, and benefits. Once you get acquainted with these types of assets, you can determine the best mix for your portfolio to suit your circumstances and risk tolerance.
Growth investments are highly suitable for the long term investors who are willing and can withstand the market ups and downs.
Stocks [Shares]
In the case of shares, they are considered as a growth investment since they can help grow the value of the owner’s original investment over the medium to long term. Anyone who owns shares also gets income from dividends. They are effectively a part of a company’s profit that is paid out to its shareholders.
Through our investing topics, you will learn about which companies pay the best dividends and hence provide a higher return on your investment. Sometimes, the value of these shares falls way below the price that investors paid for them. The prices are occasionally volatile daily, which makes shares best suited for the long term investors who can withstand these ups and downs.
Shares are also referred to as equities, and they have historically delivered higher returns compared to other assets. However, they are considered to be one of the riskiest types of investment available in the current world.
Property [Real Estate]
Our investing stories also cover property, which is considered as a growth investment since the prices of houses and other properties may rise in the medium to long term period. But, properties may also lose value leading to losses for the investors. One can invest directly by buying a property or indirectly via a property investment fund.
For the case of defensive investments, they primarily focus on generating income constantly as opposed to the growth investments. They are considered lower risk than the growth investments.
Cash investment
Another type of investment is the cash investment that comprises of the regular bank accounts, term deposits, and the high-interest savings accounts. These commonly attract lower potential returns among all the investment types available. Although they have no opportunity for capital growth, they can deliver ordinary income. Hence, they play a crucial role in protecting wealth and minimizing risk in an investment portfolio.
Bonds
For the fixed interest, the best-known type of investment in this category is bonds. They come in handy when companies and governments borrow money from investors and later pay them a rate of interest in return.
Bonds are considered to be a defensive investment since they offer lower potential returns and lower risk levels compared to shares and property. Just like cash, they can be sold quickly. But, investors must note that they are not without capital losses risks.
We strive to research the entire markets to bring you the best, informative, ideological, and most reliable investing-related content that you can find anywhere today.