TYPES OF INVESTMENT : TWO MAIN TYPES OF INVESTMENT .


TYPES OF INVESTMENT :  TWO MAIN TYPES OF INVESTMENT .
TYPES OF INVESTMENT :  TWO MAIN TYPES OF INVESTMENT .
Table of Contents

* Today there are two main types of investment 

         * Stock investment

         * Bonds
    • In general, investing is to deliver money in the hope of some profit in the future. For example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.                                                                                                                                                                 In finance, the return from investment is called return. Returns may include profit from investment or investment of two, including sale of property or investment, or dividends, interest, rental income etc. Estimated economic returns are a fairly discounted value of future returns.

TODAY THERE ARE TWO MAIN TYPES OF INVESTMENT:

The perception of traditional investment refers to investing in well-known assets (such as bonds, cash, real estate and equity shares) with the expectation of value addition, dividends and interest income in the capital.

Traditional investment should be contrasted with alternative investment.

The biggest investment in traditional investment today is real estate , i.e. investment in fixed assets. Real estate investing involves the purchase of real estate, ownership, management, rental and / or sales for profit.

As part of the real estate investment strategy, improvement in real estate is usually called real estate investment, which is considered to be a sub-specialty of real estate development.

 Real estate is an asset form with limited liquidity relative to other investments, this capital is also intense (although capital can be obtained through mortgage benefit) and is highly dependent on cash flow.

The primary reason for the failure of investment for real estate is that the investor will have negative cash flows for the period of time.

STOCK INVESTMENT:

It involves the purchase of shares in a company's equity in the hope that the share price will increase.

Buying a stake in the company is similar to the company's proprietary part. Stock investment can come in the form of buying individual stocks, mutual funds, index funds and exchange traded funds (ETFs).

BONDS:

Her'e the buyer buys loans issued by companies or governments who promise to pay the annual return (interest) until the loan is repaid.

The value of the investment varies in the form of normal interest rates, which makes the bond more or less valuable.

If these factors are not well understood and managed by the investor, then the investment becomes a risky measure.

If conventional investments are not understood then do not pay attention to other types because they are only for the professional investor.


If you do not consider yourself investing, then start taking the basic knowledge of the first investment.

 At the same time, go to an investment advisor and start investing with a small amount, you will learn and you will continue to grow. After you gain enough knowledge, start investing on your own strength.


thanks for the time .

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