- Aug 29, 2019
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Investments are something you buy or put your money into get a profitable return.
Most people choose from four main types of investment, known as "assest classes"
Shares - You buy a stake in a company
Cash - The savings you put in a bank or building society account
Property - You invest in a physical building, whether commercial or residential
Fixed interest secuirities (also called bonds) - You loan your money to a company or government
There are other types of investments available too, including:
-Foreign currency
-Collectibles, such as art and antiques
-Commodities like oil, coffee, corn, rubber or gold
-Contracts for difference, where you bet on shares gaining or losing value
The various assests owned by an investor are called a portfolio.
As a general rule, spreading your money between the different types assest classes helps lower the risk of your overall portfolio under performing - more on this later.
Most people choose from four main types of investment, known as "assest classes"
Shares - You buy a stake in a company
Cash - The savings you put in a bank or building society account
Property - You invest in a physical building, whether commercial or residential
Fixed interest secuirities (also called bonds) - You loan your money to a company or government
There are other types of investments available too, including:
-Foreign currency
-Collectibles, such as art and antiques
-Commodities like oil, coffee, corn, rubber or gold
-Contracts for difference, where you bet on shares gaining or losing value
The various assests owned by an investor are called a portfolio.
As a general rule, spreading your money between the different types assest classes helps lower the risk of your overall portfolio under performing - more on this later.