Investment refers to the accumulation of some kind of asset in hopes of getting a future return from it. There are several types of investment. Bond Investment, which is exchanging money for a promise of more money in the future. Capital Investment, which is the exchange of money by a business for an addition to their ability to produce. Besides then bond investment and capital investment, we also provide stocks investment, shares investment, mutual fund investment, property investment, real estate investment. No matter what type of investment you sellect, the fundamentals are the same. You are basically buying risk. the more risk you take from your investment, the higher price you can sell it.
Investment Plan & Investment Strategies
Investment strategies are different plan of investing your money to earn profitable returns over certain period. Different persons of varied ages need different type of investment plan to give good returns on their investment. You invest in stocks, shares and bonds for long or short-term depending on your capabilities and income sources.
Conservative people prefer investing in gradually growing companies with low risks like utility and consumer goods. Aggressive investors prefer fast and high earning stocks with high risks like foreign and technology sectors of investment. Best investment strategies indicate towards balanced investment in risky and safe sectors to maintain an equitable distribution of your money and risks so you earn income on your investment. Investment strategies need to place lot of importance on time. Long-term investment pay well and safe in the end
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Diversify Your Investment
Diversification is the key to good investment management. Diversify your assets and investments across various groups can reduce your investment risk. You can diversify your investments based on your comfortable level. Investments such as bank deposits can help you earn a fixed interest. Stocks and mutual funds promise more growth potential. Investment in property can bring you good returns over a period of time. Investments diversification ensures that you don't lose everything if a particular investment doesn't work well.
3 Major Types of Investment
i.) Stocks Investment
Stocks investment is you acquire shares of a company's assets. If the company perform well, you may receive periodic dividends from your investment and you can also sell your stock as a investment profit return. If the company does poorly, the stock price may fall and you could lose some or all of your investment.
ii.) Bonds Investment
Bond investment means you are loaning your money to a government or corporation for a certain period of time. The bond certificate state that the bond issuer will repay you on a specified date with a fixed rate of interest as your investment return. Bond investment terms can range from few months to 20 years. Bonds investment are generally considered a safer investment if you compare with stocks investment. Bond investor are paid before stock investor if a company becomes insolvent. There are no penalties for selling a bond before the end of its term, the value of the bond is subject to interest rate fluctuations. If interest rates have risen since you bought your bond, you may have to sell it at less than face value. It is also possible that the bond's yield will turn out to be less than the rate of inflation.
iii.) Mutual Funds Investment
Mutual fund is generally a professionally managed pool of money from a group of investors. Mutual fund manager will invests your money in stocks and bonds, money market instruments and the fund manager will decides the best time to buy and sell the investment. By pooling your money with other investors in a mutual fund, you can diversify even a small investment over a wide spectrum, this type of investment should reduce your investment risk
